The Reserve Bank of New Zealand kept the official cash rate at 2.75% rather than delivering the widely expected 25bp increase, a decision that weighed on the New Zealand dollar. The hold was decided by a narrow 4-3 vote, with three members preferring a hike, while the committee maintained that further tightening was likely, conditional on the outlook.
Interest Rate Outlook
Forecasts now point to 25bp increases in December and February, taking the OCR to 3.25% by end-2027, compared with a prior expectation of a hold and a 3.00% track. An additional move in March remains a risk if domestic inflation proves more persistent than expected.
Disclosure and Production
The piece also states it was produced with assistance from an artificial intelligence tool and reviewed by an editor.
