Daily newsletter · Thu 29 Oct 2026
New Zealand's Reserve Bank held rates at 2.75% when almost everyone expected a rise
The Reserve Bank of New Zealand left the official cash rate at 2.75% on Wednesday afternoon. Markets had priced about a 90% chance of a quarter-point rise to 3%.
The vote was as close as it gets. Four of the seven committee members, including Governor Anna Breman, voted to hold. Paul Conway, Hayley Gourley and Karen Silk wanted the rise.
The majority said inflation was behaving better than feared. Prices rose 3.7% in the year to September, and 3.0% once vehicle fuel is taken out. Dearer fuel has also spilled into other prices less than the bank expected.
The kiwi fell about 1.6% against the US dollar after the announcement. The NZX 50 edged up 0.1%, led by companies that depend on the local economy, and Fletcher Building rose 5%.
All seven members agreed that tighter policy is likely to be needed, depending on the data. The bank still expects annual inflation of 4.4% in the December quarter, mostly because of fuel.
the bank says the next six weeks of information could move it in either direction. Its December decision comes with fresh forecasts, a month after the 7 November election, and that is the one borrowers should circle.
More in
All stories →- Wednesday 11 November October's inflation report put a half-point rate rise back on the table
- Saturday 7 November America added 165,000 jobs in October, and the bond market heard a December rate rise
- Wednesday 4 November The Reserve Bank of Australia raised rates to a level Australians have not seen since 2008
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