Members commenced their discussion of financial conditions by considering policy settings at other advanced economy central banks. The US Federal Reserve (Fed), the Bank of Canada and the Reserve Bank of New Zealand (RBNZ) had all reduced their policy rates further since the previous meeting, in large part because of softening labour markets. In the United States, the softening labour market had led the Fed to ease policy, notwithstanding some evidence of higher tariffs beginning to be passed through to consumer prices. Market participants anticipated that the Fed would ease policy further in 2026. Additional easing ... (full story)