New Zealand central bank holds cash rate at 2.25%, adopts cautious stance amid Iran war

Published Wed, Apr 8, 2026 · 10:41 AM

[WELLINGTON] New Zealand’s central bank held its benchmark official cash rate at 2.25 per cent on Wednesday (Apr 8), as policymakers opt for caution as they gauge the fallout from the Middle East war and surging oil prices on the Pacific nation’s fragile economy.

The decision was in line with all 32 economists polled by Reuters, who had forecast the Reserve Bank of New Zealand would hold the cash rate steady.

The pause comes after an aggressive easing campaign, with the central bank cutting rates by 325 basis points since August 2024 as inflation cooled and economic growth slowed.

But price pressures are percolating again: inflation is running at 3.1 per cent, above the bank’s 1 to 3 per cent target band, and is expected to climb further as the Middle East war raises fuel and transport costs. REUTERS