The Reserve Bank of New Zealand's monetary policy committee maintained the official cash rate at 5.50%, with future adjustments aligned with declining inflation pressures.

The central bank said global growth remains below trend, with the US showing stronger growth than other advanced economies and China forecasted to grow slowly.

Global inflation is declining, prompting some central banks to consider rate cuts, but restrictive policies prevail.

In New Zealand, restrictive monetary policy is reducing domestic demand and inflation, expected to hit the 1-3% target in the latter half of 2024.

Financial conditions show rising non-performing loans and subdued credit growth, while government spending cuts weaken demand despite uncertain effects from tax cuts.