Fresh data suggests economy still not firing on all cylinders nearly a year after first interest rate cut.
The central bank and economists had broadly expected a slight rise in a difficult economy.
The Reserve Bank’s latest Financial Stability Report stress tests the economy.
ANZ’s latest measure of consumer confidence shows inflation expectations at highest level since July, 2023.
Stats NZ data shows annual inflation rose to 2.5%, above 2.2% at the end of last year.
The central bank’s chief economist aims to improve understanding of forecasts in a volatile and uncertain world.
Monetary policy is easier to reverse than fiscal policy, Treasury’s chief economic adviser Dominick Stephens says.
WATCH: US President Donald Trump keeps RBNZ and economists alert over where NZ economy is heading.
The central bank was widely expected to cut the official cash rate this week, with inflation in the band, and economy still in recovery.
NZIER’s latest survey puts momentum behind economic growth and further rate cuts.