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.
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.
RBNZ press conference key quotes
Won’t be disclosing votes today.
Feel risks are balanced.
We are in a great position to mitigate risks.
Central projection is based on cash rate on hold through 2026.
See signs labour market stabilising.
We’re now seeing economic indicators picking up across all high frequency indicators.
Current cash rate supportive and stimulatory.
Has been a challenging year for the economy.
We retain full optionality on cash rate.
Every option on the table.
Developing story, please refresh the page for updates.
Economic Indicator
RBNZ Press Conference
Following the Reserve Bank of New Zealand’s (RBNZ)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.
Read more.
This section below was published at 01:00 GMT following the Reserve Bank of New Zealand (RBNZ) monetary policy announcements.
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.
The decision aligned with the market expectations.
Summary of the RBNZ Monetary Policy Review (MPR)
Annual consumers price inflation increased to 3 percent in the September quarter.
Future moves in the OCR will depend on how the outlook for medium-term.
However, with spare capacity in the economy, inflation is expected to fall to around 2 percent by mid-2026.
Risks to the inflation outlook are balanced.
Economic activity was weak over mid-2025 but is picking up.
Lower interest rates are encouraging household spending, and the labour market is stabilising.
Risks to the inflation outlook are balanced.
Minutes of the RBNZ interest rate meeting
Future moves in the OCR will depend on how the outlook for medium-term inflation and the economy evolves.
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.
The Committee discussed the options of holding the OCR at 2.5 percent and lowering the OCR to 2.25 percent.
The case for holding the OCR emphasised the considerable reduction in the OCR to date.
Committee noted that a reduction in the OCR would help to underpin consumer and business confidence.
The case for a further reduction in the OCR emphasised significant excess capacity in the economy.
Committee voted by 5 to 1 to reduce the OCR by 25 basis points to 2.25 percent.
Significant spare capacity remains.
RBNZ updated economic forecasts
RBNZ sees official cash rate at 2.25% in March 2026 (pvs 2.55%).
RBNZ sees official cash rate at 2.28% in December 2026 (pvs 2.62%).
NZD/USD reaction to the RBNZ interest rate decision
The New Zealand Dollar picks up fresh bids in an immediate reaction to the RBNZ interest rate decision. The NZD/USD pair currently trades at 0.5655, up 0.64% on the day.
New Zealand Dollar Price Today
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.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.04% | -0.05% | 0.06% | -0.06% | -0.22% | -0.73% | -0.01% | |
| EUR | 0.04% | -0.02% | 0.13% | 0.00% | -0.17% | -0.69% | 0.02% | |
| GBP | 0.05% | 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% | |
| CAD | 0.06% | -0.01% | 0.00% | 0.13% | -0.16% | -0.70% | 0.05% | |
| AUD | 0.22% | 0.17% | 0.15% | 0.28% | 0.16% | -0.52% | 0.20% | |
| NZD | 0.73% | 0.69% | 0.67% | 0.79% | 0.70% | 0.52% | 0.72% | |
| CHF | 0.01% | -0.02% | -0.04% | 0.07% | -0.05% | -0.20% | -0.72% |
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).
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.
- The Reserve Bank of New Zealand is set to cut the key interest rate to 2.25% on Wednesday.
- Revision to the RBNZ’s OCR forecast and Governor Hawkesby’s comments will be closely scrutinized.
- The RBNZ policy announcements are expected to inject volatility around the New Zealand Dollar.
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.
The decision will be announced at 01:00 GMT, accompanied by the Monetary Policy Statement (MPS) and followed by RBNZ Governor Christian Hawkesby’s press conference at 02:00 GMT.
The New Zealand Dollar (NZD) will likely experience a big reaction to the central bank’s policy announcements.
What to expect from the RBNZ interest rate decision?
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.
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.
In its October Monetary Policy Review (MPR), the RBNZ noted that the “committee 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.”
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.
The revisions to the OCR projection in the first half of next year will also be closely scrutinized to gauge the bank’s path forward on rates.
Since the October 8 meeting, New Zealand’s 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’s 1% to 3% target range.
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’t 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.
Additionally, the RBNZ’s 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.
Meanwhile, New Zealand’s 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.
Amidst expectations that underlying inflation is largely slowing, another rate cut by the RBNZ is justified.
Economists at Westpac NZ said: “We 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.”
How will the RBNZ interest rate decision impact the New Zealand Dollar?
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.
If the central bank downgrades its inflation and/or OCR forecasts while retaining the easing bias, the Kiwi Dollar could extend the current downside.
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 and receding US tariff fears.
Dhwani Mehta, Asian Session Lead Analyst at FXStreet, offers a brief technical outlook for NZD/USD and explains:
“From 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.”
“If sellers flex their muscles on a dovish RBNZ cut, the NZD/USD pair 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,” Dhwani adds.