RBNZ Expected to Hold OCR at 2.25% on July 8 as Oil Price Collapse Eases Inflation Risks

According to Westpac's report released on July 6, the Reserve Bank of New Zealand (RBNZ) is expected to hold its official cash rate (OCR) steady at 2.25% at its monetary policy meeting on July 8. Westpac cited a significant decline in international oil prices following recent Middle East ceasefire agreements, which has substantially reduced inflation risks. Dubai crude has fallen approximately $40 per barrel from its May peak. The bank noted that while three monetary policy committee members voted for a rate hike at the May meeting, the economic backdrop has shifted materially over the past six weeks, likely resulting in a unanimous decision to hold rates at the July meeting.
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