FX.co ★ RBNZ Holds Key Rate as Expected

The Reserve Bank of New Zealand left its official cash rate unchanged at 2.25% at its February meeting, a widely expected move that keeps borrowing costs at their lowest levels in recent years as the Bank continues to support a fragile economic recovery. Policymakers noted that annual inflation remains slightly above the 1–3% target band, largely driven by higher food prices, electricity costs, and council rates. However, they observed that core inflation and wage pressures are easing, and forecast that inflation will gradually move back toward the 2% midpoint of the target range over the coming year.