Overview
- The Monetary Policy Committee voted 5–1 to lower the Official Cash Rate by 25 basis points to 2.25% at its Nov. 26 meeting.
- The bank’s track now shows the OCR around 2.25% in early 2026 and near 2.65% by late 2027, which markets interpreted as a one-and-done move.
- Officials cited spare capacity and weak activity as reasons for easing, with inflation near 3% in the September quarter and projected toward 2% by mid-2026.
- Markets rapidly repriced: the New Zealand dollar rose about 1% and two-year swaps jumped as expectations for further cuts were trimmed.
- The decision was the last under Governor Christian Hawkesby before Anna Breman takes office on Dec. 1, and it landed as global traders raised odds of a December Fed cut and watched shifting signals from the BOJ and RBA.