New Zealand Central Bank Holds Interest Rates Steady, But Hints at Future Cuts

New Zealand’s central bank held its benchmark interest rate at 3.25%, citing near-term inflation risks, but is prepared to lower rates if needed. The bank has already cut rates by 225 basis points since August. The RBNZ expects inflation to reach the top of its target band in the coming quarters. The decision reflects a cautious approach due to concerns about trade tensions and global economic uncertainty. New Zealand’s economy is recovering, but growth is hindered by slow global conditions and tight fiscal policy. The RBNZ is closely monitoring data to determine the future path of interest rates.

Read more at Yahoo Finance: New Zealand keeps interest rates on hold but flags likely cut