ASB expects the RBNZ to keep the official cash rate (OCR) at 2.25% in July. The bank’s base view remains that the OCR should gradually normalise toward a neutral ~3.25% and it plans to begin tightening from September. ASB says recent US‑Iran developments have reduced medium‑term inflation risk and given the RBNZ some breathing room, but warns geopolitical volatility makes any OCR impact hard to predict.

2026-07-03

ASB expects the RBNZ to keep the official cash rate (OCR) at 2.25% in July. The bank’s base view remains that the OCR should gradually normalise toward a neutral ~3.25% and it plans to begin tightening from September. ASB says recent US‑Iran developments have reduced medium‑term inflation risk and given the RBNZ some breathing room, but warns geopolitical volatility makes any OCR impact hard to predict.