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2026-04-08 10:10:13
[Reserve Bank of New Zealand Keeps Rates Unchanged at 2.25% as It Assesses Impact of Middle East War and Oil Prices] (1) The Reserve Bank of New Zealand (RBNZ) kept its benchmark official cash rate at 2.25% on Wednesday, as policymakers opted for a cautious approach to assess the impact of the Middle East war and soaring oil prices on the country’s fragile economy. The decision was in line with market expectations. (2) This pause comes after a round of aggressive easing – since August 2024, New Zealand has cut rates by a total of 325 basis points as inflation has cooled and economic growth has slowed. (3) But price pressures are resurfacing: inflation has reached 3.1%, above the central bank’s target range of 1%-3%, and is expected to rise further as the Middle East war pushes up fuel and transportation costs.
