RBNZ Holds Rates at 2.25%, Cites Geopolitical Risks to Inflation Outlook

The Reserve Bank of New Zealand (RBNZ) maintained the Official Cash Rate (OCR) at 2.25% during its latest policy meeting. The central bank noted that ongoing tensions in the Middle East have materially shifted the balance of risks for both inflation and economic growth. Despite the pause in rate hikes, the RBNZ anticipates a near-term spike in inflation driven by global geopolitical instability. Officials emphasized that these external developments have complicated the path toward a stable economic recovery. Market analysts observed a hawkish undertone in the bank's statement, providing some support for the New Zealand dollar against major peers. Investors remain focused on how these evolving risks will influence the central bank's future monetary policy trajectory in the coming months.