NZ: OCR held at 2.25%

Iran's state TV: We have a draft of the initial unofficial framework for the MOU with the US IRAN'S STATE TV SAYS ACCORDING TO DRAFT MOU US MILITARY FORCES WILL WITHDRAW FROM VICINITY OF IRAN AND LIFT NAVAL BLOCKADE The management and route of ship traffic through Strait of Hormuz will be handled by Iran in cooperation with Oman - Iran's State TV. If a final deal is reached within 60 days, this agreement will be approved in the form of a binding UN Security Council resolution - Iran's State TV. Iran's State TV: The Islamabad memorandum framework is not yet finalized; no step will be taken by Iran without "tangible verification."

Annual consumers price inflation was 3.1 percent in the March quarter. The Middle East conflict is increasing near-term inflation and weakening economic activity. Inflation is expected to peak at 4.3 percent in the September quarter and to return to the 2 percent target mid-point in mid2027. Currently, core inflation, wage growth, and medium- to long-term inflation expectations remain consistent with inflation returning to the 2-percent target mid-point over the medium term. The global economic backdrop remains uncertain. Supply chain disruptions, higher prices for petrochemicals, and a more fragmented global trading environment are impacting the outlook. Growth will vary across countries, reflecting differences in energy intensity, fiscal support, and exposure to AI investment. On balance, New Zealand’s trading partners are expected to see weaker growth and higher inflation. Domestically, business contacts and surveys indicate weaker confidence and spending. For some firms, rising costs are squeezing profit margins and curbing investment and hiring intentions. Consumer confidence has fallen sharply, and the housing market remains weak. Economic conditions continue to differ across regions and sectors, with high commodity RBNZ Says headline inflation is projected to climb to 4.3% in Q3 before easing back to the 2% target midpoint by mid-2027. RBNZ SAYS UNCERTAINTY CONTINUES TO SURROUND THE MEDIUM-TERM INFLATION OUTLOOK. ... RBNZ Says softer demand conditions and higher unemployment should help contain inflation pressures over time. RBNZ SAYS UNDERLYING INFLATION TRENDS, WAGE GAINS, AND LONGER-TERM EXPECTATIONS REMAIN ALIGNED WITH INFLATION EVENTUALLY RETURNING TO TARGET. ...

RBNZ Governor Breman says OCR hikes are expected at upcoming meetings, but decisions will depend on data. ? RBNZ GOV BREMAN: INFLATION OUTLOOK UNCERTAIN, MANY POSSIBLE PATHS FOR RATES FROM HERE RBNZ’s Breman said policymakers agreed on the rate trajectory, with timing being the only point of disagreement. RBNZ Governor Breman signals uncertainty on policy, saying no rate move can be entirely excluded.