New Zealand’s Central Bank Narrowly Votes to Hold Rates, Signals Hikes Are Coming

SYDNEY—New Zealand’s central bank kept its benchmark interest rate unchanged on Wednesday, narrowly deciding to wait to see how the Middle East conflict affects

inflation and an economy that has only recently shown signs of emerging from a prolonged downturn.

The Reserve Bank of New Zealand maintained the official cash rate at 2.25% for the third meeting in a row, as it weighs the threat to the South Pacific economy from higher prices of everything from motor fuels to freight against the damping effect rising inflation can have on demand.