Reserve Bank of New Zealand holds OCR at 2.25%

- Sydney (8 April)

The Reserve Bank of New Zealand (RBNZ) has decided to maintain its official cash rate at 2.25%, hours after the US and Iran agreed to halt hostilities and reopen the Strait of Hormuz for two weeks.

RBNZ’s Monetary Policy Committee made the decision by consensus, RBNZ Governor Anna Breman said at a press conference on 8 April. There were no strong advocates for hiking at the meeting, Breman added.

The central bank expects inflation to reach 3% in January-March and rise to 4.2% in April-June, it said today. But demand weakness may constrain medium-term inflation, it added.