PHOTO: RBNZ Pauses Rate Cuts, Keeps OCR at 3.25%. Healthie
The Reserve Bank of New Zealand (RBNZ) has decided to keep the Official Cash Rate (OCR) steady at 3.25% during its July 9, 2025, Monetary Policy Review. This move halts a series of six consecutive rate cuts since August 2024, totaling a reduction of 225 basis points.
The decision reflects the central bank’s assessment that current monetary settings are appropriate to maintain price stability, with annual inflation at 2.5%, comfortably within the RBNZ’s target range of 1% to 3%.
📊 Economic Indicators Support Steady OCR
Recent economic data indicates a modest recovery, with the New Zealand economy growing by 0.8% in Q1 2025. However, uncertainties persist, particularly concerning global trade tensions and their potential impact on domestic growth.
The RBNZ acknowledges these uncertainties and maintains a cautious approach, opting to observe further economic developments before making additional adjustments to the OCR.
🏠 Implications for the Real Estate Market
The decision to hold the OCR steady is expected to influence the real estate market by maintaining current mortgage rates, thereby supporting housing affordability and market stability. Real estate professionals and potential homebuyers will be closely monitoring the RBNZ’s future decisions, as any changes to the OCR could impact borrowing costs and housing demand.
🔮 Looking Ahead
The RBNZ’s next Monetary Policy Statement is scheduled for August 20, 2025. Market participants will be attentive to upcoming economic indicators and global developments that could influence the central bank’s future policy decisions.
For more detailed information on the RBNZ’s monetary policy and the Official Cash Rate, visit the Reserve Bank of New Zealand’s official website.