RBNZ Statement
RBNZ Statement: Inflation Remains Within Target Band
The rate statement noted that consumer price inflation increased to 2.5% in the first quarter but remained within the RBNZ inflation target of 1%-3%. The statement said that the New Zealand economy was improving but tariffs and global economic uncertainty would likely dampen the recovery and reduce inflationary pressures.
The members highlighted the downward revision to economic growth forecasts for China and the US due to the tariffs between the two countries, which are expected to lower global demand for New Zealand exports.
The rate decision was widely expected but the 5-1 vote (one member voted to maintain rates) was a surprise as the decision was expected to be unanimous.
The rate statement noted that consumer price inflation increased to 2.5% in the first quarter but remained within the RBNZ inflation target of 1%-3%. The statement said that the New Zealand economy was improving but tariffs and global economic uncertainty would likely dampen the recovery and reduce inflationary pressures.
The members highlighted the downward revision to economic growth forecasts for China and the US due to the tariffs between the two countries, which are expected to lower global demand for New Zealand exports.
The rate decision was widely expected but the 5-1 vote (one member voted to maintain rates) was a surprise as the decision was expected to be unanimous.
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