Photo: RNZ / Samuel RillstoneBy Gyles Beckford of RNZThe Reserve Bank (RBNZ) has held its benchmark official cash rate (OCR) unchanged at 2.25 percent, as it forecast inflation to break above 4 percent but said it did not want to hurt the economic recovery. It said it expected inflation at 3 percent for the first three months ended March from 3.1 percent at the end of last year, rising to 4.2 percent in the June quarter. The MPC said economic growth would fall as a result of the war while prices have already risen. "The extent to which these criteria are met will influence the scope for the Committee to look through current near-term inflation or whether tighter monetary policy is required." "However, any signs of significant second-round inflationary effects or increases in medium-term inflation expectations would require decisive and timely increases in the OCR to re-anchor inflation expectations.

Source: Otago Daily Times April 08, 2026 08:27 UTC