New Zealand Keeps Cash Rate on Hold, Softens Threat of Hike
- RBNZ says risks to inflation outlook have become more balanced
- Retains tightening bias, forecasts no rate cuts until 2025
This article is for subscribers only.
New Zealand’s central bank kept interest rates unchanged and softened its threat of a hike amid signs inflation pressures are waning. The local dollar fell.
The Reserve Bank’s Monetary Policy Committee held the Official Cash Rate at 5.5% Wednesday in Wellington, as expected by 22 of 24 economists surveyed by Bloomberg. The bank’s new forecasts show less chance of a rate increase this year but no reductions until 2025.