The NZX 50 rose 158 points, or 1.2%, on Wednesday to close at 13,228, its highest level in nearly three weeks, after the central bank left interest rates unchanged for a third consecutive meeting. The Reserve Bank of New Zealand held the official cash rate at 2.25%, but its statement struck a more hawkish tone than markets had anticipated, with policymakers reportedly split evenly on whether to raise rates.
The bank also signaled that borrowing costs may need to increase sooner and by more than previously expected, citing mounting inflation risks stemming from higher energy prices. At the same time, overall sentiment remained supported by optimism over a potential breakthrough in ongoing US–Iran peace talks, despite recent US military action in Tehran.
Sector-wise, healthcare stocks led the gains, with heavyweights Fisher & Paykel and Ryman advancing 2.3% and 3.6%, respectively. Infratil, the infrastructure investment company, also jumped 5.8% after reporting a net surplus for the fiscal year.
