Middle East tensions may halt RBNZ rate cuts

(Image: Getty)

Mon, 23 Jun 2025

Escalating tension in the Middle East adds to the view that the Reserve Bank of New Zealand will keep rates on hold next month. The Reserve Bank of NZ’s (RBNZ) mandate is to keep inflation between 1% and 3%. Annual inflation was 2.5% in the March quarter, and recent data already indicated it is heating up.Ross Weston, Kiwibank’s head of balance sheet – Treasury, said the situation in the Middle East introduces even more inflationary pressure.“This heightens the risk of inflation breaking above the RBNZ’s...

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