New Zealand Dollar Jumps After RBNZ Decision

2025-11-26 03:01 By Judith Sib-at 1 min. read

The New Zealand dollar climbed to $0.571, hitting a near one-month high, after the Reserve Bank cut interest rates as expected but signaled it may now be at the end of its easing cycle.

The RBNZ lowered its cash rate by 25bps to 2.25%, the lowest since June 2022, as it seeks to support the country's economic recovery.

The central bank's forward guidance showed the cash rate falling slightly to 2.2% in the second quarter next year and would be 2.28% by the end of 2026.

This led markets to sharply reduce expectations of another cut next year to around 20%, compared to over 50% before the decision.

RBNZ Governor Christian Hawkesby emphasized the shift in policy, noting that the projection “has a very slight downward tilt” but remains consistent with the cash rate being on hold through 2026.

Fresh data showed retail sales rose much faster than expected in the third quarter, while business confidence surged to an 11-year high in November, indicating the economy is picking up.



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