Australia's Inflation Eases in February but Core Pressures Persist 
Asian Markets Rally as Oil Prices Tumble and Middle East Peace Hopes Emerge 
Goldman Sachs Raises ECB Rate Hike Forecast Amid Persistent Energy-Driven Inflation 
Bank of Japan Officials Signal Continued Interest Rate Hikes Amid Inflation Concerns 
Bank of Japan Unveils New Inflation Gauge to Support Case for Future Rate Hikes 
Paraguay Central Bank Holds Interest Rate at 5.5% Amid Slowing Growth 
China Holds Benchmark Loan Prime Rate Steady for Tenth Consecutive Month 
ECB Eyes Rate Hike Amid Iran Conflict-Driven Energy Price Surge 
RBA Set to Hike Rates Again Amid Inflation Surge and Global Uncertainty 
Oil Prices Slip as Middle East Tensions Ease, Heading for Weekly Loss 
Fed Rate Cut Hopes Fade as Oil Prices Stoke Inflation Fears 
RBA Set for Back-to-Back Rate Hikes, Westpac Forecasts 
UK Consumer Confidence Weakens Amid Middle East Conflict and Rising Living Costs 
New Zealand’s central bank cut its official cash rate by 25 basis points to 3.25%, marking the sixth consecutive rate cut as global economic uncertainty and U.S. trade tensions weigh on domestic growth. The Reserve Bank of New Zealand (RBNZ) signaled a slightly deeper easing cycle than projected three months ago, forecasting the cash rate to reach 2.92% by Q4 2025 and 2.85% in Q1 2026.
The decision aligned with market expectations, as 29 out of 30 economists in a Reuters poll had anticipated the rate cut. Since August, the RBNZ has reduced rates by a total of 225 basis points, capitalizing on easing inflation, which stands at 2.5%—within the central bank’s 1%-3% target band. The RBNZ expects inflation to rise slightly to 2.7% in Q3.
However, the decision was not unanimous. One of the five committee members voted to keep the rate unchanged at 3.5%. The central bank emphasized that spare capacity in the economy and subdued inflation supported the rate cut.
New Zealand, an early mover in reversing pandemic-era monetary stimulus, had aggressively raised rates by 525 basis points from late 2021 to 2023 to combat inflation. But those high borrowing costs triggered a recession last year. While the economy has exited the downturn, growth remains sluggish, weighed down by weakening global demand and tight fiscal policy.
The RBNZ warned that U.S. tariff uncertainty could further slow international and domestic demand. Financial markets now anticipate at least one more rate cut this year, expecting the RBNZ to maintain a flexible stance in response to evolving economic conditions.
