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Economic Buzz: RBNZ keeps rates steady at 3.25% amid patchy recovery

09-Jul-2025 | 09:55
The Reserve Bank of New Zealand held its official cash rate at 3.25% in July, maintaining its dovish stance amid lingering inflation risks and subdued growth. While annual inflation stayed within the 1?3% target band at 2.5% in Q1, the central bank expects it to flirt with the upper edge in the near term. Easing core inflation and economic slack are likely to pull it back toward 2% over time. Meanwhile, GDP contracted 0.7% year-on-year in Q1?better than expected but still signaling weak momentum. The RBNZ warned that persistent uncertainty could keep households and businesses in wait-and-see mode, hinting at a data-dependent approach ahead.

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