European Stocks Rise as U.S. Inflation Data Eases Fed Rate Hike Fears 
Iran War Escalates as US, Houthis Target Ships Near Key Oil Routes 
UK Economy Posts Surprise June Growth as World Cup and Hot Weather Lift Activity 
Oil Prices Fall as U.S. Crude Inventories Surge and Hormuz Tensions Persist 
Asian Stocks Rally as Cooling US Inflation Boosts Fed Rate Outlook 
Gold Prices Slip From 10-Week High as Fed and Hormuz Risks Shape Outlook 
Asian Currencies Steady as Dollar Holds Firm After U.S. Inflation Data 
RBI Holds Repo Rate at 5.25% as Inflation Risks and Global Uncertainty Persist 
Japan Economy Minister Downplays Inflation Risks Despite BOJ Warning 
Brazil Cuts Selic Rate to 14% as Inflation Eases but Risks Persist 
China Automakers Accelerate Global Expansion as Domestic Car Sales Slump 
China Holds Loan Prime Rates Steady for 14th Month as Economic Recovery Remains Uneven 
Australia Inflation Cools as Core CPI Misses Forecasts, Easing RBA Rate Hike Pressure 
Oil Prices Slide as OPEC, IEA Cut 2026 Demand Forecasts 
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New Zealand’s Reserve Bank (RBNZ) warned Wednesday that financial system risks have risen due to heightened global economic uncertainty, but affirmed the country's banking sector remains well-capitalized and resilient. Governor Christian Hawkesby said geopolitical tensions and U.S.-imposed tariffs, including on New Zealand exports, have contributed to increased market volatility. While trade war fears have eased recently, significant global uncertainty continues to cloud the outlook.
In its latest Financial Stability Report, the RBNZ highlighted ongoing risks to global economic activity, noting that markets remain vulnerable to external shocks. Despite this, Hawkesby emphasized that New Zealand's banks are well-positioned, with strong capital and liquidity buffers enabling continued credit supply even if conditions worsen. Banks remain profitable, and non-performing loans are projected to decline as mortgage rates drop.
Although the country exited recession in late 2024, domestic economic conditions remain subdued. The unemployment rate held at 5.1% in the first quarter, reflecting continued softness in the labor market. High interest rates, a sluggish housing sector, and rising joblessness have dampened consumer demand.
However, lower borrowing costs and elevated agricultural export prices are helping ease debt burdens. Since August 2024, the central bank has slashed the official cash rate by 200 basis points to 3.5% to stimulate economic activity, with further rate cuts anticipated later this year.
Despite global and domestic headwinds, the RBNZ maintains that the financial system is stable and capable of weathering further shocks, supported by prudent banking practices and policy adjustments aimed at sustaining recovery momentum.
