New Zealand hikes rates for first time since 2023
The unanimous move is the first hike since May 2023, with policymakers saying more tightening is likely as inflation stays above target.
- On Wednesday, the Reserve Bank of New Zealand raised the official cash rate to 2.5 per cent from 2.25 per cent, marking the central bank's first rate increase since May 2023.
- Headline inflation reached 3.1 per cent in March, exceeding the RBNZ's 1 per cent to 3 per cent target range, while New Zealand's gross domestic product has been strengthening in 2026 after contracting 1.1 per cent in the prior year.
- Although unemployment remains relatively high at 5.3 per cent, Governor Anna Breman said the fall in oil prices and an official cash rate still in stimulatory territory would support growth acceleration through the second half of the year.
- The RBNZ committee agreed further stimulus reductions are likely, though timing remains uncertain, as ANZ New Zealand chief economist Sharon Zollner noted the bank's forward guidance remains relatively vague.
- Capital Economics senior Asia economist Abhijit Surya projects the RBNZ will gradually raise rates to a peak of 3.25 per cent next year, with "roughly every other meeting" seeing increases going forward.
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U.S. Dollar Slips as Markets Look Past Middle East Tensions, New Zealand Dollar Rallies After Rate Hike
The U.S. dollar edged lower on Wednesday as global currency markets showed limited concern over the latest military escalation between the United States and Iran, ... The post U.S. Dollar Slips as Markets Look Past Middle East Tensions, New Zealand Dollar Rallies After Rate Hike first appeared on [your]NEWS.
(Hanoi=Yonhap News) Correspondent Park Jin-hyung = The Reserve Bank of New Zealand (RBNZ) [is taking] measures for the first time in three years to block the inflationary trend caused by the Middle East war...
RBNZ hike seen as moderate tightening – MUFG
MUFG’s Derek Halpenny reports that the New Zealand Dollar strengthened after the RBNZ raised its policy rate by 25 bps to 2.50%, the first increase since May 2023. He notes OIS had largely priced the move and more hikes, but MUFG expects only two additional increases by March 2027. Communication is viewed as consistent with moderate tightening, with fragile domestic conditions limiting follow‑through NZD gains. RBNZ decision and NZD reaction “Th…
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