NZ: OCR paused at 2.25%

Monetary Policy Committee Maintains OCR at 2.25%

The Monetary Policy Committee has decided to keep the Official Cash Rate steady at 2.25%. Recent developments in the Middle East have significantly impacted New Zealand’s inflation and growth prospects, shifting the risk landscape.

In the short term, inflation is anticipated to rise, while the pace of economic recovery may slow. The Committee remains alert to widespread inflationary trends and is prepared to take action to ensure inflation returns to its medium-term goal.

Ongoing conflict in the Middle East has caused disruptions in global supply chains, resulting in notably higher costs for oil and petroleum products.