WELLINGTON, April 8 (Xinhua) -- New Zealand's central bank held its official cash rate at 2.25 percent on Wednesday amid inflation concerns over the Middle East conflict.
The Reserve Bank's Monetary Policy Committee said the conflict has disrupted global supply chains, leading to significantly higher prices for oil and refined petroleum products, pushing near-term inflation higher while dampening economic recovery.
The bank said the outlook for inflation will depend on how the conflict evolves and whether rising costs trigger broader price and wage pressures domestically.
The committee reiterated its focus on returning inflation to the 2 percent midpoint of the target range over time.
Iran and the United States have agreed to a two-week ceasefire less than two hours before the deadline set by U.S. President Donald Trump, and will hold negotiations in Pakistan.
