ASB Bank: The Reserve Bank of New Zealand May Have Room to Keep Interest Rates Unchanged

```htmlGolden Ten Data reported on July 3 that ASB Bank expects the Reserve Bank of New Zealand to keep the official cash rate unchanged at 2.25% in July. The bank's core view remains that the official cash rate should gradually normalize to a neutral level of around 3.25%, and plans to start raising rates gradually from September. However, ASB pointed out in a report to clients that the current developments in the U.S.-Iran situation have reduced mid-term inflation risks and given the Reserve Bank of New Zealand some additional time. The report added, however, that geopolitical developments are unpredictable, and their potential impact on the official cash rate is also difficult to foresee.```