The central bank last month launched a public consultation on a plan that would require commercial banks to ensure a baseline level of cash services, including expanding ATM availability and reducing withdrawal fees.

The proposal reflects growing concern among policymakers that the rapid transition toward digital payments could marginalise vulnerable groups and expose weaknesses in payment systems during outages or natural disasters.

Ian Woolford, director of money and cash at the Reserve Bank of New Zealand, said when the consultation was unveiled on Feb. 25 that access to cash had been steadily declining as banks reduced physical service points.

“The public expect banks to provide cash services to them, but banks have been steadily reducing points of access for their customers to get cash, bank cash or get change, especially in rural areas,” Woolford said. “We want this to change.”

Over the past decade, about 40% of bank branches in New Zealand have closed, according to central bank data.

Cash use for everyday purchases has also fallen sharply, dropping to 57.2% in 2023 from 95.8% in 2019, reflecting the widespread adoption of electronic payment systems.

Central banks, governments and commercial lenders globally are examining ways to protect access to cash, which studies show remains vital for financial inclusion and can become essential following disasters such as cyclones, when digital networks may fail.

Advocacy groups say cash continues to play an important role for people with limited financial resources or restricted access to banking services.

Jake Lilley, senior policy adviser at financial mentoring organisation FinCap, said cash remained critical for people managing tight budgets, small businesses and individuals who may not have full access to banking services, including those leaving prison or escaping violent relationships.

Research commissioned by the Reserve Bank also found cash remained important in rural areas and for community groups, while holding cultural, social and practical significance in Māori communities.

A strong majority of economists, 24 of 26 surveyed between March 9 and 12, forecast the central bank would keep its benchmark seven-day reverse repurchase rate unchanged at 4.75%. The overnight deposit and lending facility rates are also expected to remain steady at 3.75% and 5.50%, respectively.

The Indonesian central bank has maintained its policy stance since October, prioritising currency stability as the rupiah weakened amid global uncertainty. Renewed geopolitical tensions following the U.S.-Israeli war on Iran have intensified pressure on emerging-market currencies, including Indonesia’s.

The rupiah fell to a record low earlier this week and has declined more than 1% so far this year after losing about 4% in 2025, effectively closing the window for an immediate rate cut.

Bank Indonesia has previously signalled its willingness to support economic growth but has refrained from easing policy as currency volatility remains a central concern. Maintaining exchange-rate stability is a key element of the bank’s mandate.

“The central bank will hold as it can’t resume its accommodative stance given how much the rupiah has weakened over the past month, especially in the last couple of weeks after the U.S.-Iran conflict,” said Tay Qi Hang, economist at the Economist Intelligence Unit.

Investor sentiment has also been weighed down by concerns over fiscal credibility linked to the spending plans of Indonesian President Prabowo Subianto, which economists say could widen budget deficits.

Questions surrounding central bank independence after the appointment of the president’s nephew as a deputy governor have further unsettled markets, contributing to capital outflows.

The latest poll reflects a shift from an earlier Reuters survey in which about 85% of economists had anticipated rate cuts beginning in the second quarter.

Hang said February’s higher inflation reading alone was unlikely to determine the central bank’s decision but that currency weakness would delay any easing cycle.

“The timing of its next rate cut will likely be delayed until June at the earliest, as rupiah weakness constrains both the willingness and ability of the central bank to ease earlier,” he said.