Reserve Bank of New Zealand – Economic Outlook, Feb 2025

The main theme of the report is the economic forecast for New Zealand.

Key findings include: annual inflation remained at 2.2% in December 2024 and is expected to stay within the MPC's target range of 1 to 3%. Inflation on internationally traded goods remains negative, while domestic goods inflation continues to decline. Restrictive interest rates continue to dampen demand, but economic activity is expected to recover in 2025. Labor market conditions have weakened, but improvement is expected as the economy grows. Uncertainty has increased due to changes in international trade policy. The Monetary Policy Committee lowered the official cash rate by 50 basis points to 3.75%, with the possibility of further reductions in 2025.