Reserve Bank of New Zealand (RBNZ) Governor Christian Hawkesby presents the prepared remarks on the policy statement and responds to media questions at the press conference after the November monetary policy announcement.<\/p>\n
Following its November policy meeting, the RBNZ lowered the Official Cash Rate (OCR) by 25 basis points (bps) from 2.5% to 2.25%, as widely expected.<\/p>\n
RBNZ press conference key quotes<\/p>\n
Won’t be disclosing votes today.<\/p>\n
Feel risks are balanced.<\/p>\n
We are in a great position to mitigate risks.<\/p>\n
Central projection is based on cash rate on hold through 2026.<\/p>\n
See signs labour market stabilising.<\/p>\n
We’re now seeing economic indicators picking up across all high frequency indicators.<\/p>\n
Current cash rate supportive and stimulatory.<\/p>\n
Has been a challenging year for the economy.<\/p>\n
We retain full optionality on cash rate.<\/p>\n
Every option on the table.<\/p>\n
We are a bit worried about inflation risks globally.<\/p>\n
Committee more comfortable with inflation expectations than earlier in year.<\/p>\n
We are at the low point in the labor market dynamic.<\/p>\n
2026 is going to be a period when inflation falling toward 2%, economy is recovering.<\/p>\n
Developing story, please refresh the page for updates.<\/p>\n
Economic Indicator<\/p>\n
RBNZ Press Conference<\/p>\n
Following the Reserve Bank of New Zealand’s (RBNZ)<\/a>monetary policy decision, the Governor gives a press conference explaining the rationale behind the decision. The comments may influence the volatility of the New Zealand Dollar (NZD) and determine a short-term positive or negative trend.<\/p>\n <\/p>\n Read more. This section below was published at 01:00 GMT following the Reserve Bank of New Zealand (RBNZ) monetary policy announcements.<\/p>\n The Reserve Bank of New Zealand (RBNZ) decided to lower the Official Cash Rate (OCR) by 25 basis points (bps) to 2.25% from 2.5% after concluding the November monetary policy meeting on Wednesday.<\/p>\n The decision aligned with the market expectations.<\/p>\n Summary of the RBNZ Monetary Policy Review (MPR)<\/p>\n Annual consumers price inflation increased to 3 percent in the September quarter.<\/p>\n Future moves in the OCR will depend on how the outlook for medium-term.<\/p>\n However, with spare capacity in the economy, inflation is expected to fall to around 2 percent by mid-2026.<\/p>\n Risks to the inflation outlook are balanced.<\/p>\n Economic activity was weak over mid-2025 but is picking up.<\/p>\n Lower interest rates are encouraging household spending, and the labour market is stabilising.<\/p>\n Risks to the inflation outlook are balanced.<\/p>\n Minutes of the RBNZ interest rate meeting<\/p>\n Future moves in the OCR will depend on how the outlook for medium-term inflation and the economy evolves.<\/p>\n The committee noted that a reduction in the OCR would help to underpin consumer and business confidence and lean against the risk that the economy recovers more slowly than needed to meet the inflation objective.<\/p>\n The Committee discussed the options of holding the OCR at 2.5 percent and lowering the OCR to 2.25 percent.<\/p>\n The case for holding the OCR emphasised the considerable reduction in the OCR to date.<\/p>\n Committee noted that a reduction in the OCR would help to underpin consumer and business confidence.<\/p>\n The case for a further reduction in the OCR emphasised significant excess capacity in the economy.<\/p>\n Committee voted by 5 to 1 to reduce the OCR by 25 basis points to 2.25 percent.<\/p>\n Significant spare capacity remains.<\/p>\n RBNZ updated economic forecasts<\/p>\n RBNZ sees official cash rate at 2.25% in March 2026 (pvs 2.55%).<\/p>\n RBNZ sees official cash rate at 2.28% in December 2026 (pvs 2.62%).<\/p>\n NZD\/USD reaction to the RBNZ\u00a0interest rate decision<\/p>\n The New Zealand Dollar picks up fresh bids in an immediate reaction to the\u00a0RBNZ interest rate<\/a>\u00a0decision. The\u00a0NZD\/USD\u00a0pair currently trades at 0.5655, up 0.64% on the day.\u00a0<\/p>\n New Zealand Dollar Price Today<\/p>\n The table below shows the percentage change of New Zealand Dollar (NZD) against listed major currencies today. New Zealand Dollar was the strongest against the Japanese Yen.<\/p>\n USDEURGBPJPYCADAUDNZDCHFUSD-0.04%-0.05%0.06%-0.06%-0.22%-0.73%-0.01%EUR0.04%-0.02%0.13%0.00%-0.17%-0.69%0.02%GBP0.05%0.02%0.12%-0.01%-0.15%-0.67%0.04%JPY-0.06%-0.13%-0.12%-0.13%-0.28%-0.79%-0.07%CAD0.06%-0.01%0.00%0.13%-0.16%-0.70%0.05%AUD0.22%0.17%0.15%0.28%0.16%-0.52%0.20%NZD0.73%0.69%0.67%0.79%0.70%0.52%0.72%CHF0.01%-0.02%-0.04%0.07%-0.05%-0.20%-0.72%<\/p>\n The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the New Zealand Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent NZD (base)\/USD (quote).<\/p>\n This section below was published on November 25 at 20:15 GMT as a preview of the Reserve Bank of New Zealand (RBNZ) interest rate decision.<\/p>\n The Reserve Bank of New Zealand is set to cut the key interest rate to 2.25% on Wednesday.Revision to the RBNZ\u2019s OCR forecast and Governor Hawkesby\u2019s comments will be closely scrutinized.The RBNZ policy announcements are expected to inject volatility around the New Zealand Dollar.<\/p>\n The Reserve Bank of New Zealand (RBNZ) is expected to cut the Official Cash Rate (OCR) to 2.25% from 2.5%, following the conclusion of the November monetary policy meeting on Wednesday.<\/p>\n The decision will be announced at 01:00 GMT, accompanied by the Monetary Policy Statement (MPS) and followed by RBNZ Governor Christian Hawkesby\u2019s press conference at 02:00 GMT.<\/p>\n The New Zealand Dollar (NZD) will likely experience a big reaction to the central bank\u2019s policy announcements.\u00a0\u00a0<\/p>\n What to expect from the RBNZ interest rate decision?\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n Following a standard 25-basis-point (bps) rate cut in August and a surprise 50-bps move in October, the RBNZ is expected to deliver a hat-trick, with a 25-bps reduction fully baked in for the November monetary policy meeting.\u00a0\u00a0<\/p>\n The central bank decided to opt for a big rate cut in its last policy decision in the face of a slowing economy and confidence that inflation was under control.<\/p>\n In its October Monetary Policy Review (MPR), the RBNZ noted that the \u201ccommittee remains open to further reductions in the OCR as required for inflation to settle sustainably near the 2 percent target midpoint in the medium term.\u201d<\/p>\n Therefore, another rate cut on Wednesday would come as no surprise. Hence, all eyes will be on the discussions among the policymakers on further monetary policy easing heading into 2026.<\/p>\n The revisions to the OCR projection in the first half of next year will also be closely scrutinized to gauge the bank\u2019s path forward on rates<\/a>.<\/p>\n Since the October 8 meeting, New Zealand\u2019s annual Consumer Price Index (CPI) inflation accelerated in the third quarter (Q3), coming in at 3.0%, in line with the forecasts and at the top end of the central bank\u2019s 1% to 3% target range.<\/p>\n However, the RBNZ made it clear in October that inflation was ticking higher, but noted that spare capacity in the economy should bring it back to 2% by mid-2026, suggesting that policymakers don\u2019t expect inflation to be persistent. On top of that, the annual non-tradeable inflation decreased to 3.5% in Q3, compared with 3.7% in the second quarter.<\/p>\n Additionally, the RBNZ\u2019s monetary conditions survey showed on November 11 that two-year inflation expectations, seen as the time frame when the central bank policy action will filter through to prices, steadied at 2.28% in Q4 2025.<\/p>\n Meanwhile, New Zealand\u2019s Unemployment Rate rose to 5.3% in Q3 from 5.2% in the second quarter, according to the official data released by Statistics New Zealand on November 4. The figure came in line with the market consensus.<\/p>\n Amidst expectations that underlying inflation is largely slowing, another rate cut by the RBNZ is justified.\u00a0\u00a0<\/p>\n Economists at Westpac NZ said: \u201cWe expect a 25bp cut in the OCR to 2.25%. We see a downward revision in the projected OCR track of around 30-35bp, with a low point in the projection of around 2.20% in the first half of 2026. The implication is a mild and data-dependent easing bias for next year.\u201d<\/p>\n How will the RBNZ interest rate decision impact the New Zealand Dollar?<\/p>\n The NZD\/USD pair is miring in seven-month lows as the RBNZ event risk looms. Heightened expectations of a November rate cut have weighed heavily on the NZD since the end of October.<\/p>\n If the central bank downgrades its inflation and\/or OCR forecasts while retaining the easing bias, the Kiwi Dollar could extend the current downside.<\/p>\n On the contrary, the NZD could witness a big relief rally should the RBNZ signal the end of the rate-cutting cycle amid an improving economic outlook<\/a> and receding US tariff fears.<\/p>\n Dhwani Mehta, Asian Session Lead Analyst at FXStreet<\/a>, offers a brief technical outlook for NZD\/USD and explains:<\/p>\n \u201cFrom a near-term technical perspective, bearish potential remains intact for the Kiwi pair as the 14-day Relative Strength Index (RSI) remains vulnerable well beneath the midline.\u201d<\/p>\n \u201cIf sellers flex their muscles on a dovish RBNZ<\/a> cut, the NZD\/USD pair<\/a> could drop further toward the falling trendline support at 0.5550. Further south, the 0.5500 round level and the April low of 0.5486 could be tested. On the flip side, the pair needs to scale the 21-day Simple Moving Average (SMA) at 0.5663 on a sustained basis for any meaningful recovery. The next relevant topside targets align at the 50-day SMA at 0.5735 and the 0.5800 threshold,\u201d Dhwani adds.\u00a0<\/p>\n RBNZ FAQs<\/p>\n The Reserve Bank of New Zealand (RBNZ) is the country\u2019s central bank. Its economic objectives are achieving and maintaining price stability \u2013 achieved when inflation, measured by the Consumer Price Index (CPI), falls within the band of between 1% and 3% \u2013 and supporting maximum sustainable employment.<\/p>\n The Reserve Bank of New Zealand\u2019s (RBNZ) Monetary Policy Committee (MPC) decides the appropriate level of the Official Cash Rate (OCR) according to its objectives. When inflation is above target, the bank will attempt to tame it by raising its key OCR, making it more expensive for households and businesses to borrow money and thus cooling the economy. Higher interest rates are generally positive for the New Zealand Dollar (NZD) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken NZD.<\/p>\n Employment is important for the Reserve Bank of New Zealand (RBNZ) because a tight labor market can fuel inflation. The RBNZ\u2019s goal of \u201cmaximum sustainable employment\u201d is defined as the highest use of labor resources that can be sustained over time without creating an acceleration in inflation. \u201cWhen employment is at its maximum sustainable level, there will be low and stable inflation. However, if employment is above the maximum sustainable level for too long, it will eventually cause prices to rise more and more quickly, requiring the MPC to raise interest rates to keep inflation under control,\u201d the bank says.<\/p>\n In extreme situations, the Reserve Bank of New Zealand (RBNZ) can enact a monetary policy tool called Quantitative Easing. QE is the process by which the RBNZ prints local currency and uses it to buy assets \u2013 usually government or corporate bonds \u2013 from banks and other financial institutions with the aim to increase the domestic money supply and spur economic activity. QE usually results in a weaker New Zealand Dollar (NZD). QE is a last resort when simply lowering interest rates is unlikely to achieve the objectives of the central bank. The RBNZ used it during the Covid-19 pandemic.<\/p>\n","protected":false},"excerpt":{"rendered":"Reserve Bank of New Zealand (RBNZ) Governor Christian Hawkesby presents the prepared remarks on the policy statement and…\n","protected":false},"author":2,"featured_media":154077,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[42,43,40,38,41,39],"class_list":["post-154076","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headlines","tag-headlines","tag-news","tag-top-news","tag-top-stories","tag-topnews","tag-topstories"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/154076","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=154076"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/154076\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/154077"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=154076"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=154076"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=154076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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