New Zealand Growth Hinges on Conflict Resolution: RBNZ Breman

2026-04-09 01:24 By Farida Husna 1 min. read

New Zealand’s economy remains closely tied to Middle East developments, Reserve Bank Governor Anna Breman said, adding that a quicker resolution to the conflict could unlock stronger growth this year.

After holding the cash rate at 2.25%, she noted that earlier cuts continue to filter through, supporting activity.

With early-year momentum, the economy is well-positioned, if external risks ease.

Data showed a pickup in January and February, though tensions weighed on sentiment in March and are expected to dampen April.

Breman stressed that uncertainty remains high, with the conflict’s duration and severity the key swing factor.

Beyond oil prices, supply disruptions will shape near-term growth and inflation.

A swift de-escalation could lower fuel costs and boost confidence, while a prolonged conflict risks sustaining strains and elevated inflation.

The RBNZ’s pause reflects this balance, giving policymakers time to assess global risks while keeping a bias to act if pressures intensify.



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New Zealand’s economy remains closely tied to Middle East developments, Reserve Bank Governor Anna Breman said, adding that a quicker resolution to the conflict could unlock stronger growth this year. After holding the cash rate at 2.25%, she noted that earlier cuts continue to filter through, supporting activity. With early-year momentum, the economy is well-positioned, if external risks ease. Data showed a pickup in January and February, though tensions weighed on sentiment in March and are expected to dampen April. Breman stressed that uncertainty remains high, with the conflict’s duration and severity the key swing factor. Beyond oil prices, supply disruptions will shape near-term growth and inflation. A swift de-escalation could lower fuel costs and boost confidence, while a prolonged conflict risks sustaining strains and elevated inflation. The RBNZ’s pause reflects this balance, giving policymakers time to assess global risks while keeping a bias to act if pressures intensify.
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