The Reserve Bank of New Zealand keeps the interest rate unchanged and is expected to raise it at least twice before the end of the year.

The Reserve Bank of New Zealand has maintained its interest rates unchanged for the third consecutive meeting, opting to wait longer to assess the impact of global energy shocks on domestic spending and medium-term inflation. The Reserve Bank of New Zealand's Monetary Policy Committee announced on Wednesday in Wellington that it would keep the official cash rate at 2.25%, in line with economists' expectations. The latest forecast from the Reserve Bank of New Zealand suggests the possibility of at least two interest rate hikes of 25 basis points each before the end of this year. "Overall, the official cash rate is likely to be raised earlier and by a larger magnitude than anticipated in the February monetary policy statement," the Reserve Bank of New Zealand stated in a post-meeting announcement. "The pace of raising the official cash rate will depend on the relative impact of ongoing wage and price-setting behaviors and weak economic activity on medium-term inflation pressures." The Reserve Bank of New Zealand raised its average official cash rate outlook for the fourth quarter of 2026 from 2.38% to 2.84% and for the first quarter of 2027 from 2.52% to 3%.