Published July 9. 2025 06:59 am EST
by Richard Fitzgerald Cason
Editor in Chief,
NEWSMOVESMARKETSFOREX ®
- RBNZ keeps the Official Cash Rate (OCR) at 3.25 percent
- GDP growth over the December and March quarters was stronger than expected reflecting and increase in house hold consumption and business investment
- CPI Inflation index increased to 2.5% percent in March 2025 quarter and is expected to increase in June and September quarters of 2025 .
- Geopolitical tensions, Economic outlook is uncertain, influenced by global factors like trade tensions and tariffs..
- Consumer spending and business investment, are lackluster due to previous restrictive monetary policies
- Following the RBNZ’s announcement, the New Zealand Dollar (NZD) did not change much. The NZD/USD pair was trading at about 0.6000, with a slight increase of 0.06 percent.
RBNZ Sticks to Steady Rate of 3.25% as Economy Eases Up
The Reserve Bank of New Zealand (RBNZ) has decided to keep the Official Cash Rate (OCR) at 3.25 percent.
This means they are not changing interest rates right now, which many people expected. The RBNZ thinks that prices for goods and services (inflation) will rise but stay within their target range of 1 to 3 percent by mid-2025.
The Central Bank believes inflation will get back to around 2 percent by early 2026.
Even though prices for New Zealand’s exports are high and lower interest rates are helping the economy, there are concerns about global trade issues that might slow down New Zealand’s recovery and keep inflation in check.
Outlook for the Economy Remains Uncertain
Middle East and Ukraine conflict has Clouded the financial economic forecast Uncertainty around Global Energy Prices
The RBNZ noted that the economic outlook is uncertain, influenced by global factors like trade tensions and tariffs.
They want to wait for more information about how these issues will affect New Zealand’s economy before deciding on future rate cuts.
As well as the concern over sovereign risk, which could result in possible additional financial market volatility and increased bond yields.
Additionally, the Middle Ease and Ukraine conflict has clouded the financial economic forecast as it relates to heightened uncertainty around global energy prices.
Currency Market (NZD) Reaction to News
Following the RBNZ’s announcement, the New Zealand Dollar (NZD) did not change much.
The NZD/USD pair was trading at about 0.6000, with a slight increase of 0.06 percent. The NZD was a bit stronger against the Japanese Yen, showing a mixed response to the news.
In summary, while the RBNZ decided to keep rates the same, the market is waiting for more information about the economy before reacting strongly.
Please be sure to catch all the latest High Impact Major Market moving News Events on the Forex News Economic Events Weekly July 8, 2025.
We will see what this week ahead highly awaited MARKET MOVING Interest Bank rates decision report numbers brings us. For more Developing intriguing Central Bank Stories be sure to visit our Central Bank Breaking News Here: 
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Source: https://www.rbnz.govt.nz/hub/news/2025/07/ocr-3-25-percent-ocr-unchanged
