NZ central bank holds rates, surprising markets

The RBNZ lowered its forecast cash rate peak to 5.6% from a previous projection of 5.7% and continues to foresee a cut until mid-2025. — Reuters

WELLINGTON: New Zealand’s central bank is holding the cash rate steady at 5.5% and trimming the forecast peak for rates, catching markets by surprise as policymakers say the risks to the inflation outlook have become more balanced.

The decision on Wednesday was in line with expectations from 28 economists in a Reuters poll with all but one forecasting the Reserve Bank of New Zealand (RBNZ) would leave the cash rate at a 15-year high for the fourth consecutive meeting.