New Zealand Dollar Edges Higher

2026-02-19 03:29 By Judith Sib-at 1 min. read

The New Zealand dollar ticked up to $0.597 on Thursday, having fallen 1.4% in the previous session to a near two-week low following a dovish hold by the Reserve Bank.

At its Wednesday meeting, the first with Governor Anna Breman at the helm, the RBNZ held its cash rate at 2.25%, signaling that policy would remain accommodative for some time as inflation is expected to return to the midpoint of the target band over the next year.

Breman noted that while the current projections indicate a potential rate hike later this year, the move is not fully priced in and will also depend on how the economy evolves relative to expectations.

Following the decision, markets scaled back expectations for an imminent rate hike, pushing the likelihood of policy tightening further into late 2026.

Meanwhile, Assistant Governor Karen Silk highlighted the central bank’s unusual challenge: supporting a robust economic recovery without triggering significant inflationary pressures.



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