Assistant Governor Karen Silk indicated that RBNZ is likely to slow the pace of monetary easing and incorporate pauses into its rate cycle after February.
“There could be pauses built in, but it is definitely a slower track after February,” she noted in an interview with Bloomberg. This aligns with the bank’s updated projections released yesteday.
Silk highlighted the importance of maintaining “mildly restrictive” monetary policy to manage inflationary pressures, particularly as inflation is projected to rise to 2.5% next year.
Looking further ahead, Silk noted that RBNZ expects to be “a little closer” to the long-term neutral rate by the end of 2025. However, she emphasized that current projections do not indicate rates falling “below neutral” at any point during the forecast period.
