Financial News: New Zealand Central Bank Keeps Rate On Hold

New Zealand Central Bank Keeps Rate On Hold

02/18/2026 - 00:41:00 (RTTNews)

(RTTNews) - The Reserve Bank of New Zealand left its benchmark interest rate unchanged on Wednesday, signalling an intention to maintain an accommodative policy stance to support economic recovery.

At the first meeting of Anna Breman as RBNZ Governor, the Monetary Policy Committee decided to hold the key official cash rate at 2.25 percent, as widely expected.

The bank has lowered its benchmark rate by 325 basis points since August 2024, bringing it to the lowest since mid-2022.

"The forward OCR path reflects a somewhat stronger economic outlook and balanced risks to inflation," the bank said in a statement.

Inflation rose to 3.1 percent in the fourth quarter of 2025, which was the highest since the middle of 2024. The bank expects inflation to return to the 1-3 percent target band in the current quarter. "The Committee is confident that inflation will fall to the 2 percent midpoint over the next 12 months due to spare capacity in the economy, modest wage growth, and core inflation within the target band," the bank said.

The MPC observed that the economy is at an early stage in its recovery. GDP growth is expected to increase over 2026.

If the economy evolves as expected, monetary policy is likely to remain accommodative for some time, the bank said. The MPC concluded that the monetary policy settings will gradually normalize as the recovery strengthens and inflation falls sustainably towards the target.

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