The Reserve Bank of New Zealand left its Official Cash Rate unchanged at 3.25% on Wednesday, halting an easing cycle that had delivered six consecutive reductions and 225 basis points of cuts since August 2024. The decision, in line with most economists’ forecasts, marks the central bank’s first pause in nearly a year. Meeting minutes show policymakers weighed a 25-basis-point cut to 3.00% but opted to wait for more clarity on price pressures and economic momentum. The committee expects consumer-price inflation to climb toward the upper end of its 1%-to-3% target band around mid-2025 before gradually settling near 2% by early 2026. Members highlighted significant spare capacity in the economy and said domestic inflation pressures are easing. Officials noted that high export prices and earlier rate cuts are supporting activity, yet warned that global trade tensions and higher tariffs could curb growth. The bank signalled it is prepared to lower borrowing costs further if inflation behaves as projected, with many analysts looking to the August meeting for the next possible move. Following the announcement, the New Zealand dollar edged lower while government bond yields rose as traders pushed back expectations for an immediate cut.