Bank of Canada Holds Interest Rate at 2.25% Amid Trade and Global Uncertainty 
Federal Reserve Faces Subpoena Delay Amid Investigation Into Chair Jerome Powell 
U.S. Dollar Slides for Second Week as Tariff Threats and Iran Tensions Shake Markets 
Why Trump’s new pick for Fed chair hit gold and silver markets – for good reasons 
Copper Prices Hit Record Highs as Metals Rally Gains Momentum on Geopolitical Tensions 
RBA Deputy Governor Says November Inflation Slowdown Helpful but Still Above Target 
U.S. Government Faces Brief Shutdown as Congress Delays Funding Deal 
Bank of Japan Signals Cautious Path Toward Further Rate Hikes Amid Yen Weakness 
MAS Holds Monetary Policy Steady as Strong Growth Raises Inflation Risks 
BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook 
U.S.–Venezuela Relations Show Signs of Thaw as Top Envoy Visits Caracas 
China Holds Loan Prime Rates Steady in January as Market Expectations Align 
New Zealand’s central bank cut its official cash rate by 25 basis points to 3.25%, marking the sixth consecutive rate cut as global economic uncertainty and U.S. trade tensions weigh on domestic growth. The Reserve Bank of New Zealand (RBNZ) signaled a slightly deeper easing cycle than projected three months ago, forecasting the cash rate to reach 2.92% by Q4 2025 and 2.85% in Q1 2026.
The decision aligned with market expectations, as 29 out of 30 economists in a Reuters poll had anticipated the rate cut. Since August, the RBNZ has reduced rates by a total of 225 basis points, capitalizing on easing inflation, which stands at 2.5%—within the central bank’s 1%-3% target band. The RBNZ expects inflation to rise slightly to 2.7% in Q3.
However, the decision was not unanimous. One of the five committee members voted to keep the rate unchanged at 3.5%. The central bank emphasized that spare capacity in the economy and subdued inflation supported the rate cut.
New Zealand, an early mover in reversing pandemic-era monetary stimulus, had aggressively raised rates by 525 basis points from late 2021 to 2023 to combat inflation. But those high borrowing costs triggered a recession last year. While the economy has exited the downturn, growth remains sluggish, weighed down by weakening global demand and tight fiscal policy.
The RBNZ warned that U.S. tariff uncertainty could further slow international and domestic demand. Financial markets now anticipate at least one more rate cut this year, expecting the RBNZ to maintain a flexible stance in response to evolving economic conditions.
