RBNZ Holds Key Rate as Expected

2026-02-18 01:10 By Joshua Ferrer 1 min. read

The Reserve Bank of New Zealand left its official cash rate unchanged at 2.25% at its February meeting, in line with expectations, keeping borrowing costs at their lowest level since mid-2022.

The central bank signaled that policy will remain accommodative for some time, with earlier rate cuts continuing to support the economy’s recovery and gradually absorb spare capacity.

While annual inflation is still slightly above the 1–3% target range, underlying price and wage pressures are easing, and inflation is projected to return toward the 2% midpoint over the coming year.

Economic momentum has improved, with GDP expanding in recent quarters on firmer export prices, stronger residential and business investment, and better business sentiment, though household spending and labor market conditions remain soft.

The Committee described risks to the outlook as broadly balanced and reiterated that future policy moves will be guided by incoming economic and inflation data.



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