ASB Bank expects the Reserve Bank of New Zealand to hold the official cash rate at 2.25% in July. The bank's core view remains that the OCR should be normalized towards a neutral level around 3.25%, with hikes penciled in from September. But for now, U.S.-Iran developments have lowered medium-term inflation risks, and afford the RBNZ some time, ASB says in a note to clients. Still, the geopolitical backdrop is fickle, so too are the potential OCR implications, it adds. (james.glynn@wsj.com; X @JamesGlynnWSJ)
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RBNZ Likely Has Scope to Keep Rates Steady — Market Talk
ASB Bank expects the Reserve Bank of New Zealand to hold the official cash rate at 2.25% in July. The bank's core view remains that the OCR should be normalized towards a neutral level around 3.25%, with hikes penciled in from September. But for now, U.S.-Iran developments have lowered medium-term…