RBNZ keeps benchmark rate at 2.75%, says monetary policy may need tightening in future

On October 28, the Reserve Bank of New Zealand kept its benchmark interest rate at 2.75%, below the market expectation of 3.00%. The RBNZ said global economic growth remains resilient, but factors such as geopolitical tensions, high energy prices, financial stress, and the surge in artificial intelligence-related investment are increasing economic vulnerability. Monetary Policy Committee members unanimously agreed on the inflation outlook, but differed on the weighting of different risks and the timing of the policy response. The committee believes that monetary policy may need to be tightened in the future, but specific actions will still depend on the economic outlook.