MNI BRIEF: RBNZ Leaves OCR At 3.25%

The Reserve Bank of New Zealand’s monetary policy committee held the Official Cash Rate at 3.25% on Wednesday, signalling that further easing is likely if medium-term inflation pressures continue to decline as projected.

“The economic outlook remains highly uncertain. Further data on the speed of New Zealand’s economic recovery, the persistence of inflation, and the impacts of tariffs will influence the future path of the Official Cash Rate,” the MPC noted in a statement. 

The committee’s decision was largely expected. (See MNI RBNZ WATCH: OCR To Hold, Split Vote Likely)

“The case for keeping the OCR on hold at this meeting highlighted the elevated level of uncertainty, and the benefits of waiting until August in light of near-term inflation risks,” the MPC said. “Some members emphasised that waiting would allow the Committee to assess whether weakness in the domestic economy persists, and how inflation and inflation expectations evolve. It would also allow more time to observe developments in the global economy.”