New Zealand resists implementing early rate cuts despite being in a recession.

The Reserve Bank of New Zealand has prolonged its policy of maintaining interest rates at current levels amidst the challenge of managing both heightened inflation and a recession. However, it cautioned that further measures are necessary to mitigate cost pressures. As anticipated, policymakers opted to retain the cash rate at a 15-year peak of 5.5 percent, consistent since May of the previous year, citing the strategy of sustained restrictive rates as a means to bring inflation back within the target range of 1 to 3 percent this calendar year.