New Zealand Central Bank Likely to Hold Rates Amid Rising Inflation, Economist Says

Economist Anthony Malouf from Ebury stated that the Reserve Bank of New Zealand is likely to keep interest rates unchanged at its policy meeting next week. According to Jin10, Malouf noted that recent inflation has unexpectedly risen, primarily due to increasing energy prices. However, the uncertainty stemming from the Iranian conflict has led to a weakening in domestic demand. He suggested that the most probable course of action is to maintain the current interest rates temporarily while using the policy meeting to better express their outlook on the future economy. Malouf also anticipates two rate hikes later this year, followed by another increase early next year, which would bring the official cash rate to 3%.