New Zealand’s central bank expects slightly weaker growth this year amid elevated near-term inflation pressures.
Reserve Bank of New Zealand Governor Anna Breman indicated growth will be marginally slower than previously anticipated but remains on track for 2024. The outlook reflects persistent near-term inflationary pressures, though no specific forecasts were provided.
The RBNZ had earlier signaled a cautious stance on monetary policy, balancing inflation risks against economic activity. Recent data showed inflation easing but still above the bank’s target range, reinforcing expectations for a prolonged restrictive policy.
Markets are monitoring the RBNZ’s next moves, with investors pricing in potential rate adjustments later in the year based on incoming economic indicators.