New Zealand Dollar Rises Further

2026-07-09 02:47 By Judith Sib-at 1 min. read

The New Zealand dollar climbed to around $0.572, the highest level in nearly three weeks, following the central bank’s hawkish stance, while data showed strong manufacturing growth.

New Zealand’s manufacturing activity expanded at the fastest pace in almost five years in June, adding to signs of a pickup in economic growth as RBNZ Governor Anna Breman highlighted improving momentum in the second half of the year.

The central bank raised its official cash rate by 25 bps on Wednesday for the first time in three years, saying that an increase in demand could add to medium-term inflation pressures.

The decision came as oil prices began rising again following renewed hostilities between the US and Iran, reinforcing the central bank’s concerns over inflation.

Breman said higher fuel prices remained the key upside risk to inflation, warning that if the conflict persists, there is a risk that inflation could become embedded.



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New Zealand Dollar Rises Further
The New Zealand dollar climbed to around $0.572, the highest level in nearly three weeks, following the central bank’s hawkish stance, while data showed strong manufacturing growth. New Zealand’s manufacturing activity expanded at the fastest pace in almost five years in June, adding to signs of a pickup in economic growth as RBNZ Governor Anna Breman highlighted improving momentum in the second half of the year. The central bank raised its official cash rate by 25 bps on Wednesday for the first time in three years, saying that an increase in demand could add to medium-term inflation pressures. The decision came as oil prices began rising again following renewed hostilities between the US and Iran, reinforcing the central bank’s concerns over inflation. Breman said higher fuel prices remained the key upside risk to inflation, warning that if the conflict persists, there is a risk that inflation could become embedded.
2026-07-09
New Zealand Dollar Rises After RBNZ Rate Hike
The New Zealand dollar rose to around $0.569 after the Reserve Bank raised its cash rate by 25 bps to 2.50%, as expected, and signaled further rate hikes this year. The move marked the central bank’s first rate increase in more than three years, as policymakers sought to bring inflation back to target without causing unnecessary damage to economic activity. The RBNZ acknowledged that easing geopolitical tensions and the recent decline in energy prices had eased near-term inflation pressures, though it warned that the effects of the war would persist for some time and that the outlook for medium-term inflation remained uncertain. Also, the country's economic growth is expected to pick up in the third quarter after losing momentum in the second quarter due to the fuel shock. Most economists anticipate one or two additional rate hikes this year, while markets have almost fully priced in a move in October.
2026-07-08
New Zealand Dollar Slips Ahead of RBNZ Decision
The New Zealand dollar edged lower to $0.569 after a strong weekly gain, as markets looked ahead to the Reserve Bank's policy decision. The central bank is expected to raise the official cash rate by 25 bps to 2.50% later this week in what would be its first hike in more than three years amid persistent inflationary pressures. However, some local economists are calling for a hold, pointing to the retreat in oil prices near pre-war levels. The upcoming decision comes after the RBNZ's closely contested May meeting, where policymakers voted to keep rates unchanged after a split decision that required Governor Anna Breman to cast the deciding vote. Externally, the kiwi is drawing support from a weaker US dollar, as disappointing jobs data reduced expectations of a near-term rate hike by the Federal Reserve.
2026-07-06