The New Zealand dollar eased to around $0.601 after the Reserve Bank left its key interest rate unchanged and signaled it would maintain an accommodative policy stance for an extended period. The central bank reiterated that its approach is designed to support an economic recovery that remains uneven across sectors and regions.
Even so, updated RBNZ projections now point to the possibility of a 25-basis-point rate increase later this year, a notable shift from earlier guidance that suggested mid-2027 as the most likely timing for any hike. Policymakers expect growth to gradually strengthen and inflation to move sustainably toward the midpoint of the target band, but they stressed that they remain cautious about when to begin unwinding stimulus.
Market participants are currently pricing in at least one rate hike in the fourth quarter, while some economists see scope for tightening as early as September. Investors are now looking to Governor Anna Breman’s press conference later today for further signals on the future path of monetary policy.
