New Zealand dollar slumps after RBNZ unexpectedly holds rates at 2.75%
The Reserve Bank of New Zealand kept its official cash rate unchanged at 2.75%, despite the market pricing in close to a 90% probability of a 25 basis point hike. The decision passed on a tight 4-3 vote and the country's five largest commercial banks had expected rates at 3.00%. The majority chose to assess the impact of the two previous hikes, with inflation at 3.7% year-on-year in the third quarter. Governor Anna Breman said further hikes are likely.
In 40 seconds
- The RBNZ left the OCR at 2.75% on a 4-3 vote, against a market probability of close to 90% for a hike.
- New Zealand's five largest commercial banks had expected an increase to 3.00%.
- Inflation fell from 4.1% to 3.7% year-on-year in the third quarter, below the central bank's forecasts.
IASummary generated by artificial intelligence from a story by XTB.com. It may contain errors: the original source prevails.




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