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NZ: OCR lowered to 3%
Annual consumers price index inflation is currently around the top of the Monetary Policy Committee’s 1 to 3 percent target band. However, with spare capacity in the economy and declining domestic inflation pressure, headline inflation is expected to return to around the 2 percent target midpoint by mid-2026. New Zealand’s economic recovery stalled in the second quarter of this year. Spending by households and businesses has been constrained by global economic policy uncertainty, falling employment, higher prices for some essentials, and declining house prices. There are upside and downside risks to the economic ... (full story)
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RBNZ notes that economic growth might accelerate once rate cuts fully filter through the economy.
— First Squawk (@FirstSquawk) August 20, 2025
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RBNZ minutes: If medium-term inflation pressures continue to ease in line with the committee’s central projection, the committee expects to lower the OCR further
— FinancialJuice (@financialjuice) August 20, 2025
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RBNZ minutes: Inflation projected to rise to 3.0 percent in the September quarter, there is a significant chance it exceeds the target band.
— FinancialJuice (@financialjuice) August 20, 2025