Live Updates > Live Update Details
2026-02-18 10:13:07
[RBNZ Keeps Rates Unchanged at 2.25%, Acknowledges Economic Recovery but Reiterates Commitment to Easing] 1. On Wednesday (February 18), the Reserve Bank of New Zealand (RBNZ) announced its interest rate decision, maintaining the Official Cash Rate (OCR) at 2.25%, in line with market expectations. The committee noted the continued risks to inflation and discussed the risks of prolonged policy easing. 2. The decision indicated that the committee believes the New Zealand economy is in the early stages of recovery. Despite increased residential and business investment, household spending remains cautious, and while the labor market is stabilizing, the unemployment rate remains high. The committee expects inflation to fall back to the target range of 1%-3% this quarter. 3. Looking ahead, the RBNZ stated that if the economy develops as expected, monetary policy is likely to remain accommodative for some time; as the economic recovery strengthens and inflation continues to fall to the midpoint of the target, monetary policy setting will gradually normalize. According to the latest forecast, the OCR is expected to be 2.26% in June 2026 and 2.52% in March 2027.
