New Zealand Now Sees Cash Rate Cuts Starting Later in 2025
- RBNZ says it discussed rate hike at May policy meeting
- Central bank concerned about sticky domestic inflation
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New Zealand’s central bank kept interest rates unchanged for a seventh straight meeting and signaled policy will need to stay tight for longer to stamp out stubborn inflation.
The Reserve Bank’s Monetary Policy Committee held the Official Cash Rate at 5.5% on Wednesday in Wellington, as anticipated. The bank’s new forecasts show reductions starting in the third quarter of 2025 instead of the second.