Overview
- Policymakers voted 5–1 to lower the Official Cash Rate by 25 basis points after debating a hold at 2.50%.
- The bank’s track shows the OCR around 2.25% in early 2026 and rising toward roughly 2.65% by late 2027, with future decisions tied to medium‑term inflation and growth.
- Markets quickly priced out deeper cuts as the New Zealand dollar climbed about 1% and two‑year swap rates rose, with some pricing a hike by late 2026.
- The move follows roughly 325 basis points of easing since mid‑2024 to counter a weak economy and higher unemployment, even as annual inflation sits near 3%.
- The decision was the last under Governor Christian Hawkesby, with Anna Breman taking over on December 1 ahead of her first policy meeting in February 2026.