New Zealand Central Bank Holds Cash Rate 325 2025 07 09
Reuters6 days
New Zealand Central Bank Holds Rates at 3.25%
Above: Reserve Bank of New Zealand in Wellington, New Zealand. Image copyright: Wikimedia Commons
The Spin
Narrative A
The Reserve Bank made the right call by hitting a pause on rate cuts. With inflation still sitting at 2.5% and trade wars brewing globally, rushing into more cuts would be reckless. The economy is already recovering with strong export prices, and mortgage holders have gotten plenty of relief from the 225 basis points already slashed.
Narrative B
This pause shows the Reserve Bank is being overly cautious when families desperately need relief. The economy remains weak with job losses mounting, especially in construction, and the government isn't doing enough to help with cost of living pressures. More aggressive cuts are needed to support the struggling recovery.