Gold Prices Pull Back After Record Highs as January Rally Remains Strong 
U.S. Urges Japan on Monetary Policy as Yen Volatility Raises Market Concerns 
Asian Currencies Trade Flat as Dollar Retreats After Fed Decision 
ECB Signals Steady Interest Rates as Fed Risks Loom Over Outlook 
U.S. Dollar Slides for Second Week as Tariff Threats and Iran Tensions Shake Markets 
Philippine Economy Slows in Late 2025, Raising Expectations of Further Rate Cuts 
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 
U.S. Government Faces Brief Shutdown as Congress Delays Funding Deal 
Bank of Japan Signals Cautious Path Toward Further Rate Hikes Amid Yen Weakness 
Bank of Canada Holds Interest Rate at 2.25% Amid Trade and Global Uncertainty 
U.S. and El Salvador Sign Landmark Critical Minerals Agreement to Boost Investment and Trade 
BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook 
RBA Deputy Governor Says November Inflation Slowdown Helpful but Still Above Target 
U.S.–Venezuela Relations Show Signs of Thaw as Top Envoy Visits Caracas 
Indonesia Stocks Face Fragile Sentiment After MSCI Warning and Market Rout 
MAS Holds Monetary Policy Steady as Strong Growth Raises Inflation Risks 
New Zealand’s Reserve Bank (RBNZ) warned Wednesday that financial system risks have risen due to heightened global economic uncertainty, but affirmed the country's banking sector remains well-capitalized and resilient. Governor Christian Hawkesby said geopolitical tensions and U.S.-imposed tariffs, including on New Zealand exports, have contributed to increased market volatility. While trade war fears have eased recently, significant global uncertainty continues to cloud the outlook.
In its latest Financial Stability Report, the RBNZ highlighted ongoing risks to global economic activity, noting that markets remain vulnerable to external shocks. Despite this, Hawkesby emphasized that New Zealand's banks are well-positioned, with strong capital and liquidity buffers enabling continued credit supply even if conditions worsen. Banks remain profitable, and non-performing loans are projected to decline as mortgage rates drop.
Although the country exited recession in late 2024, domestic economic conditions remain subdued. The unemployment rate held at 5.1% in the first quarter, reflecting continued softness in the labor market. High interest rates, a sluggish housing sector, and rising joblessness have dampened consumer demand.
However, lower borrowing costs and elevated agricultural export prices are helping ease debt burdens. Since August 2024, the central bank has slashed the official cash rate by 200 basis points to 3.5% to stimulate economic activity, with further rate cuts anticipated later this year.
Despite global and domestic headwinds, the RBNZ maintains that the financial system is stable and capable of weathering further shocks, supported by prudent banking practices and policy adjustments aimed at sustaining recovery momentum.
