RBNZ’s Breman: OCR hikes are expected at upcoming meetings, but decisions will depend on data

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."

IDF: Struck over 150 Hezbollah sites in South Lebanon, Beqaa IDF: SEVERAL EXPLOSIVE DRONES HIT ISRAEL NEAR LEBANON BORDER

The Monetary Policy Committee today voted to hold the OCR at 2.25 percent. 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 mid-2027. 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 prices supporting incomes in regional New Zealand. The Monetary Policy Committee today voted to hold the Official Cash Rate (OCR) at 2.25%. • Prior to The Middle East conflict, New Zealand was showing signs of economic recovery. The conflict is increasing near-term inflation and weakening economic activity. • Inflation is… pic.twitter.com/RpKTLT9RHC RBNZ vote was 3-3 to hold with the chair voting to keep policy steady. Market was only 17% priced for a hike today. RBNZ SAYS INTEREST RATES MAY NEED TO INCREASE EARLIER AND MOVE HIGHER THAN OUTLINED IN THE FEBRUARY POLICY OUTLOOK. ... RBNZ Minutes revealed member Carl Hansen argued for an immediate rate hike to preserve flexibility for additional tightening in July.