ASB Bank Expects Reserve Bank Of New Zealand To Hold Official Cash Rate At 2.25% In July

ASB Bank said it expected the Reserve Bank of New Zealand to keep the official cash rate unchanged at 2.25% in July. According to Jin10, ASB said its core view remained that the official cash rate should gradually normalize to a neutral level of around 3.25%, with a plan to begin raising rates gradually from September. In a report to clients, ASB said developments in the U.S.-Iran situation had reduced medium-term inflation risks and bought the central bank some time. The report added that geopolitical conditions can change quickly, making the potential impact on the official cash rate difficult to predict.