NZ Gross Domestic Product: June 2025 Quarter

Recent indicators suggest that growth of economic activity moderated in the first half of the year. Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment have risen. In support of its goals and in light of the shift in the balance of risks, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 4 to 4‑1/4 percent. In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective. FOMC STATEMENT COMPARE: pic.twitter.com/6gTcajtaKz One dissenter: Voting against this action was Stephen I. Miran, who preferred to lower the target range for the federal funds rate by 1/2 percentage point at this meeting. FED SAYS DOWNSIDE RISKS TO EMPLOYMENT HAVE RISEN

The Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. The MPC adopts a medium-term and forward-looking approach to determine the monetary stance required to achieve the inflation target sustainably. At its meeting ending on 17 September 2025, the MPC voted by a majority of 7–2 to maintain Bank Rate at 4%. Two members voted to reduce Bank Rate by 0.25 percentage points, to 3.75%. The Committee voted by a majority of 7–2 to reduce the stock of UK government bond purchases held for monetary policy purposes, and financed by the issuance of central bank reserves, by £70 billion over the next 12 months, to a total of £488 billion. There has been substantial disinflation over the past two and a half years, following previous external shocks, supported by the restrictive stance of monetary policy. That progress has allowed for reductions in Bank Rate over the past year. The Committee remains focused on squeezing out any existing or emerging persistent inflationary pressures, to return inflation sustainably to its 2% target in the medium term. BoE policymakers Dhingra and Taylor voted to cut rates by 0.25% *BOE LEAVES KEY RATE AT 4%; EST. 4.000% *BOE SLOWS PACE OF QUANTITATIVE TIGHTENING TO £70B; EST. £70B *BOE'S BAILEY: RATE CUTS NEED TO BE MADE 'GRADUALLY & CAREFULLY' Bank holds base interest rate at 4% The Bank of England has voted to maintain the base interest rate at 4%, despite some signs the housing market is slowing down. Members of the Bank’s Monetary Policy Committee (MPC) and Governor Andrew Bailey (main picture) voted 7-2 for a hold. The Office for National Statistics released figures yesterday showing a 2.8% increase in house price growth in the year to July, down from 3.6% the previous month. And this decision to hold the rate is despite a stubborn inflation figure, which remained static at 3.8% yesterday, well above the Bank’s 2% target. There will be another Bank interest rate decision on 6 November, before the Budget on 26 November.

In trend terms, in August 2025: • unemployment rate increased to 4.3%. • participation rate remained at 66.9%. • employment increased to 14,643,000. • employment to population ratio remained at 64.1%. • underemployment rate remained at 5.8%. • monthly hours worked increased to 1,985 million. In seasonally adjusted terms, in August 2025: • unemployment rate ...