{"id":643637,"date":"2026-10-28T09:14:10","date_gmt":"2026-10-28T09:14:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/643637\/"},"modified":"2026-10-28T09:14:10","modified_gmt":"2026-10-28T09:14:10","slug":"nz-dollar-interest-rates-drop-on-rbnz-rate-call-while-stocks-rally","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/643637\/","title":{"rendered":"NZ dollar, interest rates drop on RBNZ rate call while stocks rally"},"content":{"rendered":"<p class=\"VFgYVkWVN\" style=\"display:none\">Much of the surprise came down to  timing, but the decision to hold was only reached by four votes to three.<\/p>\n<p class=\"VFgYVkWVN\" style=\"display:none\">Hamish Pepper, head of multi-asset and global investments at Harbour Asset Management, said the market was left confused by the rate call, which seemed to run counter to the Reserve Bank\u2019s (RBNZ) messaging between Monetary Policy Committee meetings.<\/p>\n<p class=\"VFgYVkWVN\" style=\"display:none\">\u201cIt\u2019s a little interesting if you think of some of the communication we\u2019ve had in recent weeks,\u201d Pepper told the Herald.<\/p>\n<p class=\"VFgYVkWVN\" style=\"display:none\">Last month, Reserve Bank Governor Anna Breman, who voted today to keep rates on hold, said in a speech to a Dunedin audience that the bank expected the economic recovery to strengthen and broaden, reflecting a resilient export sector and gradual increase in household spending.<\/p>\n<p class=\"VFgYVkWVN\" style=\"display:none\">Meanwhile, Assistant Governor Karen Silk, in an interview with Bloomberg \u2013 also last month \u2013 talked of a rate hike in December but voted for a rate hike today.<\/p>\n<p class=\"VFgYVkWVN\" style=\"display:none\">\u201cUnfortunately, I think we\u2019ve probably got a situation now where it\u2019s a little more confusing for the market and people who are following the RBNZ to know what to make of comments that come from either the Governor herself or from the Monetary Policy Committee members,\u201d Pepper said.<\/p>\n<p class=\"VFgYVkWVN\" style=\"display:none\">\u201cOverall though, there\u2019s consistency in the narrative for that idea of further hikes but I think the delivery of this decision has created unnecessary volatility,\u201d he said.<\/p>\n<p class=\"VFgYVkWVN\" style=\"display:none\">In its release, the Reserve Bank said committee members agreed on the overall outlook for inflation.<\/p>\n<p class=\"VFgYVkWVN\" style=\"display:none\">\u201cHowever, members differed in how much weight they placed on various risks and the timing of the monetary policy response,\u201d the bank\u2019s statement said.<\/p>\n<p class=\"VFgYVkWVN\" style=\"display:none\">\u201cThe committee agreed that tighter monetary policy is likely to be required but remains conditional on the economic outlook.\u201d<\/p>\n<p class=\"VFgYVkWVN\" style=\"display:none\">Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.<\/p>\n<p>Stay ahead with the latest market moves, corporate updates, and economic insights by subscribing to our <a href=\"https:\/\/www.nzherald.co.nz\/my-account\/profile\/newsletters\/?from=cmp\" target=\"_blank\" rel=\"noopener noreferrer nofollow\" title=\"https:\/\/www.nzherald.co.nz\/my-account\/profile\/newsletters\/?from=cmp\">Business newsletter<\/a>\u00a0\u2013 your essential weekly round-up of all the business news you need.<\/p>\n","protected":false},"excerpt":{"rendered":"Much of the surprise came down to timing, but the decision to hold was only reached by four&hellip;\n","protected":false},"author":2,"featured_media":643638,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[227969,1396,138,3043,6932,9525,13736,14134,7011,38402,1644,24826,28162,12469,809,225,220,111,139,69,5908,90,31842,9366,16237,19257,7676,33011,10665,643,84431,1361,3608,5977,6123],"class_list":["post-643637","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-227969","tag-banks","tag-business","tag-call","tag-cash","tag-caught","tag-counter","tag-decision","tag-dollar","tag-drop","tag-financial","tag-hike","tag-hold","tag-interest","tag-keep","tag-market","tag-markets","tag-new-zealand","tag-newzealand","tag-nz","tag-official","tag-on","tag-pointed","tag-pricing","tag-rally","tag-rate","tag-rates","tag-rbnz","tag-reserve","tag-stocks","tag-strongly","tag-that","tag-were","tag-which","tag-while"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/643637","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=643637"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/643637\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/643638"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=643637"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=643637"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=643637"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}