US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Asian Stocks Slide as Chip Selloff Deepens Ahead of TSMC Earnings 
Oil Prices Set for Weekly Surge as U.S.-Iran Conflict Fuels Supply Fears 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Brazil Weighs IP Curbs, Patent Suspensions After New U.S. Tariffs 
Malaysia Q2 Economy Grows 5.8%, Beating Forecasts on Strong Tech Exports and Domestic Demand 
New Zealand’s economy expanded more than expected in Q1 2025, strengthening recovery hopes after last year’s recession and giving the Reserve Bank of New Zealand (RBNZ) more leeway before making further interest rate cuts. According to Statistics New Zealand, gross domestic product (GDP) rose 0.8% in the March quarter, exceeding the Reserve Bank's forecast of 0.4% and analysts’ expectations of 0.7%. The previous quarter’s growth was revised down to 0.5% from 0.7%.
This stronger-than-expected performance signals a quicker rebound for the economy, which experienced a technical recession in 2024 with two consecutive quarters of contraction—the worst since 1991 outside the COVID-19 era. On an annual basis, GDP contracted 0.7%, slightly better than the anticipated 0.8% decline.
Westpac senior economist Michael Gordon said the RBNZ is likely to pause at its July cash rate review to assess ongoing economic developments. Since August 2024, the central bank has cut the official cash rate by 225 basis points, currently at 3.25%, and has signaled at least one more rate cut this year due to global trade risks.
Industry-wise, nine of 16 sectors showed growth, led by business services and manufacturing. However, declines were reported in arts, recreation, media, and telecommunications. The data release had minimal market impact, with the New Zealand dollar steady at $0.6028.
This economic resilience may delay aggressive monetary easing, as policymakers seek to balance inflation control with growth stability. The RBNZ is expected to stay cautious amid global uncertainty and domestic sectoral imbalances.
