Overview
- The committee weighed holding at 2.50% versus cutting and voted 5–1 for a 25 basis point reduction.
- The published track shows the OCR steady near 2.25% through early 2026 before edging toward about 2.65% by late 2027.
- Policymakers cited spare capacity after a 0.9% quarterly contraction and 5.3% unemployment, with inflation projected to drift toward 2% by mid-2026.
- Markets lifted the New Zealand dollar and pushed two-year swaps higher as odds of additional cuts fell sharply.
- The decision was Governor Christian Hawkesby’s final meeting before Anna Breman becomes governor on December 1, with her first policy decision due in February 2026.