Photo: RNZ / SuppliedThe Reserve Bank (RBNZ) has held its benchmark official cash rate (OCR) unchanged at 2.25 percent, saying it needs to get inflation under control, but does not want to upset the economic rebound. The decision was expected and the central bank emphasised it was balancing the need to support economic recovery with stimulatory rate settings, while reducing inflation pressures. It said economic growth was uneven and recovery would be gradual with a muted housing market, cautious domestic consumption, low migration, slow wage growth and a weak labour market weighing on inflation. "If the economy evolves as expected, monetary policy is likely to remain accommodative for some time." As the recovery strengthens and inflation falls sustainably towards the target midpoint, monetary policy settings will gradually normalise."

Source: Otago Daily Times February 18, 2026 01:11 UTC