Goldman Sachs: The language of the Reserve Bank of New Zealand is more accommodative than expected.

Goldman Sachs economists said in a report that the monetary policy statement of the Reserve Bank of New Zealand, especially its forward guidance, is more accommodative than expected. Although the market has already reflected the expectation that the official overnight cash rate will increase by 40 basis points in 2026, the central bank has stated that the policy environment may remain accommodative for some time. These economists pointed out that the Reserve Bank of New Zealand has expressed confidence that inflation will fall to the middle of the 2% range in the next 12 months, while also warning about recent higher-than-expected overall inflation rates. Given the significant spare capacity in the country's economy, Goldman Sachs expects a strong economic recovery to be accompanied by moderate inflation pressure. They said, "We believe that the communication of the Reserve Bank of New Zealand today is consistent with the delay of the first rate hike to the fourth quarter of 2026."