Core Viewpoint - The Reserve Bank of New Zealand (RBNZ) has decided to maintain the benchmark interest rate at 3.25%, aligning with market expectations, while indicating potential future rate cuts depending on mid-term inflation pressures and global economic uncertainties [1][2]. Group 1: Monetary Policy Decisions - The RBNZ's decision to keep the interest rate unchanged reflects a cautious approach towards the current economic outlook, despite some members advocating for a reduction to 3% to support economic activity [1]. - The current inflation rate in New Zealand stands at 2.5%, which is above the RBNZ's target range of 1%-3% [1]. - The RBNZ anticipates that the annual consumer price inflation rate may rise to the upper limit of the target range by mid-2025 but is expected to gradually decline to around 2% by early 2026 [1]. Group 2: Economic Outlook and Risks - The RBNZ acknowledges that global policy uncertainties, rising trade protectionism, and tariff issues are hindering economic growth and may delay New Zealand's economic recovery [1]. - Analysts suggest that the market has already priced in the RBNZ's decision, with future focus shifting to the bank's assessments of inflation, tariffs, and global economic data [2]. - The RBNZ's future monetary policy will adopt a "data-dependent" approach, with upcoming economic indicators and geopolitical changes being crucial for decision-making [2].

Core Viewpoint - The Reserve Bank of New Zealand (RBNZ) anticipates further reductions in the official cash rate if mid-term inflationary pressures continue to ease as expected [1] Group 1 - The RBNZ's outlook suggests a proactive approach to monetary policy in response to inflation trends [1] - The expectation of lower cash rates indicates a potential shift in the economic environment, which could influence investment strategies [1]