Reserve Bank of New Zealand reiterates readiness to act if Middle East shock turns temporary inflation into persistent pressure after OCR hold at 2.25 percent
The Reserve Bank of New Zealand published remarks by Dr Breman explaining that the Monetary Policy Committee’s 8 April decision to hold the Official Cash Rate at 2.25 percent reflected a view that the recent rise in inflation is temporary, while emphasising readiness to act if price pressures persist and a continued focus on returning inflation to 2 percent over the medium term. She noted that the Middle East conflict is disrupting global supply chains and lifting prices, with annual consumer price index inflation at 3.1 percent in the March 2026 quarter, above the 1 to 3 percent target range and slightly higher than expected due largely to fuel prices, while core inflation remains within the band.