Members of the Management Board of the Bank of the Bank of New Zealand (RBNZ) decided to maintain the official money (OCR) at 3.25% after the July meeting of the policy on Wednesday.
The decision was in line with market expectations.
RBNZ stood Pat on the policy indicator after six consecutive cuts.
Summary of the RBNZ monetary policy declaration (MPS)
If the medium -term pressure on inflation is still soothing as expected, the Committee expects to lower the official money rate even more.
Inflation of consumer prices will probably raise towards the peak of the Monetary Policy Committee by 1 to 3 % of the target band for half 2025.
Economic perspectives remain very uncertain.
However, with spare production capacity in the economy and the decreasing domestic pressure of inflation, the header inflation will remain in the team and return to about 2 percent at the beginning of 2026.
Further data on the speed of economic recovery of New Zealand, the durability of inflation and the impact of tariffs will affect the future path of the official money rate.
Increased global uncertainty of politics and tariffs is expected to reduce global economic growth.
This will probably snail-paced down the pace of economic recovery of New Zealand, reducing inflation pressure.
Protocols for meeting interest rates RBNZ
The committee expects to lower the official money rate even more, fundamentally in accordance with the projection presented in May.
The case of maintaining the OCR at this meeting emphasized an increased level of uncertainty and benefits resulting from waiting until August in the lithe of compact -term risk of inflation.
The Committee discussed the OCR limiting options with 25 base points to 3 percent or maintenance of OCR at 3.25 percent at this meeting.
It is expected that global growth will snail-paced down in the second half of 2025, reflecting the uncertain consequences of commercial protectionism.
Some members emphasized that further monetary alleviation in July would provide a handrail to ensure regaining business.
National financial conditions evolve generally as expected.
The risk for global perspectives remains raised.
Recently announced tariffs can cause a higher or lower medium inflation pressure to New Zealand than adopted in the central scenario.
NZD/USD reaction to RBNZ interest rates
The dollar of New Zealand shows a tiny or without initial response to the decision of the RBNZ interest rate. . NZD / USD The pair currently trads at 0.6000, up by 0.06 during the day.
New Zealand dollar price today
The table below shows a percentage change in the dollar of New Zealand (NZD) compared to the stock exchange main currencies. The dollar of New Zealand was the strongest in relation to the Japanese yen.
| USD | EUR | GBP | JPy | BOOR | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.03% | 0.03% | 0.18% | 0.09% | -0.05% | -0.04% | -0.05% | |
| EUR | -0.03% | 0.01% | 0.14% | 0.06% | -0.04% | -0.09% | 0.04% | |
| GBP | -0.03% | -0.01% | 0.16% | 0.05% | -0.13% | -0.16% | -0.07% | |
| JPy | -0.18% | -0.14% | -0.16% | -0.12% | -0.22% | -0.24% | -0.21% | |
| BOOR | -0.09% | -0.06% | -0.05% | 0.12% | -0.08% | -0.13% | -0.02% | |
| Aud | 0.05% | 0.04% | 0.13% | 0.22% | 0.08% | -0.04% | 0.08% | |
| NZD | 0.04% | 0.09% | 0.16% | 0.24% | 0.13% | 0.04% | 0.09% | |
| CHF | 0.05% | -0.04% | 0.07% | 0.21% | 0.02% | -0.08% | -0.09% |
The heat map shows percentage changes in the main currencies towards each other. The basic currency is collected from the left, and the quote currency is collected from the upper order. For example, if you choose a New Zealand dollar on the left column and move along the horizontal line to the American dollar, the percentage shift displayed in the field will represent NZD (Base)/USD (quote).
In this section below, on July 8 at 21:15 GMT was published as a preview of New Zealand’s reserves (RBNZ).
- It is forecasted that the Bank of New Zealand’s reserves will maintain its key interest rate at 3.25% on Wednesday.
- RBNZ suggested that it is close to the end of the subtle cycle, because “inflation is in the target band.”
- The dollar of New Zealand can experience a huge response to language in the political statement of the RBNZ.
New Zealand’s reserve bank (RBNZ) It was expected to maintain the official cash rate (OCR) at 3.25% After the end of the July MEETING POLICY MEETING on Wednesday.
The decision will be announced at 02:00 GMT. This time the announcement will not be accompanied by a monetary policy statement (MPS), followed by acting RBNZ Governor’s press conference Christian Hawkesby.
This is why, The language in the Policy review will be strictly studied For fresh tips on the status of relieving RBNZ, which can significantly affect the performance of New Zealand dollar (NZD).
What can you expect from RBNZ percentage?
. May RBNZ May statement He signaled it The bank is close to the end of the rate cycle, which began in August 2024.. Kiwi central bank has reduced rates Since then, for 225 base points (BPS).
In the statement of RBNZ, he said that inflation is in the destination band, and OCR is similar to its neutral range between 2%-4%.
RBNZ also noted that “full economic effects of cuts in OCR since August 2024 have not yet been fully implemented”, adding that economic uncertainty remains high due to American tariffs.
In addition, inflation of consumer prices in New Zealand (CPI) and Gross domestic product (GDP) exceeded expectations in the first quarter (Q1).
CPI NZ increased by 2.5% of installments in Q1, accelerating from the growth by 2.2% observed in Q4 2024 and the expected growth by 2.3%. Meanwhile, the GDP of the domestic island has increased by 0.8% in the March quarter from the previous three months, faster than forecasts for an raise of 0.7%.
Against this background, RBNZ could have fool the patIn anticipation of inflation and work in the second quarter to a fresh economic evaluation before the political meeting on August 19. Industry experts expect another RBNZ rate in August.
How will the RBNZ interest rate decision affect the dollar of New Zealand?
Steam NZD/USD Is in corrective mode from nine months 0.6121 achieved a week ago. The minus kiwi is sponsored by the lively protected attractiveness American dollar (USD) Among the fresh fears in the tariff war and maintaining fiscal problems in the USA.
The couple could extend their withdrawal if RBNZ has left the door to an additional rate reduction this year, while recognizing the emerging risk associated with foreign trade uncertainty.
And vice versa, the NZD can resume its upward trend Economic perspectives and a wide achievement of the purpose of inflation.
Dhwani Mehta, a leading analyst at the Asian session Fxstreetoffers compact technical perspectives for NZD/USD and explains:
“The Kiwi pair has found support at a critical 50-day straight movable average (SMA) at 0.5988, while the 14-day relative strength rate (RSI) is aimed at recovering the middle. psychological barriers. “
“If the 50-day support of SMA disappears, a steep slope cannot be ruled out in the direction of 100-day SMA to 0.5876. Additional decreases will be focused on 200-day SMA at 0.5848”, adds Dhwani.
FAQ RBNZ
Bank of Bank for New Zealand (RBNZ) is the Central Bank of the country. Its economic goals are achieving and maintaining price stability – achieved when inflation, measured by the consumer price indicator (CPI), falls into bands from 1% to 3% – and supporting the maximum sustainable employment.
Reserve Bank Reserve of New Zealand (RBNZ) Polityka Committee (MPC) determines the appropriate level of the official cash rate (OCR) in accordance with its purposes. When inflation is above the target, the bank will try to tame it, raising its key OCR, making it more high-priced for households and companies to borrow money, and thus cooling the economy. Higher interest rates are generally positive for the dollar of New Zealand (NZD) because they lead to higher crops, which makes the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken the NZD.
Employment is vital for the Bank of Reserve in New Zealand (RBNZ) because the strict labor market can drive inflation. The RBNZ goal of “maximum sustainable employment” is defined as the highest operate of work resources, which can be maintained over time without creating inflation. “When employment is at a maximum sustainable level, low and stable inflation will occur. However, if the employment is too long at a maximum sustainable level, ultimately the prices will increase faster, requiring MPC to raise interest rates to maintain inflation under control,” says the bank.
In extreme situations, the Bank of New Zealand’s reserves (RBNZ) may protect a monetary policy tool called quantitative forest. QE is a process in which RBNZ prints a local currency and uses it to buy assets – usually government or corporate bonds – from banks and other financial institutions to raise the national supply of money and stimulate business activities. QE usually causes a weaker dollar in New Zealand (NZD). QE is a last resort when simply lowering interest rates is unlikely to achieve the goals of the central bank. RBNZ used it during the Covid-19 pandemic.
