RBNZ left its Official Cash Rate unchanged at 3.25% on Wednesday, in line with market expectations, but maintained a clear easing bias in its statement.
While headline inflation is projected to briefly rise toward the top of the 1–3% target band by mid-2025, policymakers expect it to return near 2% by early 2026, supported by spare economic capacity and waning domestic price pressures.
The policy path forward remains clouded by global headwinds, sue to rising tariff tensions and geopolitical uncertainty.
The statement noted that “If medium-term inflation pressures continue to ease as projected, the Committee expects to lower the Official Cash Rate further.”
