NZ pushes back on early rate cuts despite recession

The Reserve Bank of New Zealand extended its policy to keep interest rates on hold as the central bank navigates elevated inflation and a recession, but warned that more work is needed to get cost pressures under control.

Policymakers as expected left the cash rate at a 15-year high of 5.5 per cent, where it has been since May last year, because keeping rates at a “restrictive level for a sustained period will return inflation to within its 1 per cent to 3 per cent target range this calendar year”.