New Zealand

RBNZ Raises Interest Rate to 2.50%, Matching Expectations

The Reserve Bank of New Zealand (RBNZ) raised its official cash rate by 25 basis points to 2.50%, in line with market expectations, as policymakers continued efforts to keep inflation under control.

The decision matched economists’ forecasts of 2.50% and marked an increase from the previous policy rate of 2.25%. The latest move extends the central bank’s tightening cycle as it seeks to ensure inflation returns sustainably to its target range.
New Zealand Economy Accelerates as First-Quarter Growth Meets Expectations

New Zealand's economy expanded 0.8% quarter-over-quarter in the first quarter, matching economists' expectations and accelerating from 0.5% growth in the previous quarter.
The Reserve Bank of New Zealand left its official cash rate unchanged at 2.25%, matching both market expectations and the previous rate.
New Zealand retail activity remained stronger than expected in the first quarter, with Retail Sales rising 0.9% quarter-over-quarter, beating forecasts of 0.5% and matching the previous quarter’s growth pace. Core Retail Sales also exceeded expectations, increasing 1.0% versus forecasts of 0.8%, although growth slowed from the prior 1.5%.
New Zealand’s manufacturing sector slowed notably in April, with the New Zealand BusinessNZ PMI falling to 50.5 from 52.8 in March.
New Zealand inflation expectations edged slightly higher in Q2.

Inflation Expectations (QoQ, Q2): 2.5%
Previous: 2.4%
New Zealand’s inflation came in stronger than expected in the first quarter, signaling persistent price pressures.

Consumer prices rose 0.9% quarter-on-quarter, above the 0.8% forecast and up from 0.6% in the previous quarter. On an annual basis, inflation held steady at 3.1%, exceeding expectations of 2.9%.
New Zealand’s trade balance remained in deficit in March, with the annual figure coming in at -$3.19 billion, slightly worse than the previous reading of -$3.10 billion.
New Zealand’s BusinessNZ PMI came in at 53.2 for March, down from the previous 54.8 reading.
New Zealand’s central bank held rates steady in its latest decision.

The Reserve Bank of New Zealand kept the policy rate at 2.25%, in line with expectations
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