New Zealand Reserve Bank May Keep Rates Unchanged Amid Improving Economic Outlook

New Zealand's Westpac Chief Economist Kelly Eckhold suggests that the Reserve Bank of New Zealand (RBNZ) is likely to maintain its interest rates at the upcoming policy meeting. According to Jin10, the official cash rate is expected to remain at 2.25%, with the possibility of advancing the anticipated first rate hike to December. Eckhold emphasizes that due to ongoing excess capacity, tightening financial conditions, and declining inflation in food and fuel prices, the RBNZ's inflation expectations are trending towards 2%. This development reduces the urgency for the central bank to resume rate hikes swiftly.