According to Karen Silk, Assistant Governor of the Reserve Bank of New Zealand, the central bank is more inclined to delay its next rate increase until December. This week marked the second consecutive policy rate hike by the institution, with Governor Anna Breman indicating that further tightening could follow, though policymakers intend to allow time to assess the effects of the measures already implemented.

The tone of the policy statement has led investors to scale back expectations for an October rate rise while significantly increasing bets on a December move. In an interview on Friday in Wellington, Silk stated: "Our communication has been quite direct; we believe rates will likely need to rise further, depending on the economic outlook. Whether it happens in October or December remains undecided, but based on the projected rate path, the latter appears more probable."

Market pricing from swaps indicates that investors assign roughly a 31% probability to a 25-basis-point hike to 3% in October, whereas the market has fully priced in rates reaching 3% no later than December. Silk reiterated that the central bank does not follow a predetermined policy course. She commented: "We must remain flexible in our thinking and open to making adjustments when necessary. If data begins to signal different trends or circumstances shift, we will adapt accordingly."