RBNZ to Add More Policy Meetings in 2027

The Reserve Bank of New Zealand will expand its monetary policy meetings to eight per year starting in 2027, up from the current seven. The adjustment aims to align more closely with major central banks and give policymakers greater agility in responding to shifting economic conditions. Currently, the central bank delivers full Monetary Policy Statements at selected meetings, while others provide shorter updates. The change brings the RBNZ in line with peers such as the Reserve Bank of Australia and the Bank of England, both meeting eight times a year.

The Reserve Bank of New Zealand left its official cash rate unchanged at 2.25% at its February meeting, in line with expectations, keeping borrowing costs at their lowest level since mid-2022. The central bank signaled that policy will remain accommodative for some time, with earlier rate cuts continuing to support the economy’s recovery and gradually absorb spare capacity. While annual inflation is still slightly above the 1–3% target range, underlying price and wage pressures are easing, and inflation is projected to return toward the 2% midpoint over the coming year. Economic momentum has improved, with GDP expanding in recent quarters on firmer export prices, stronger residential and business investment, and better business sentiment, though household spending and labor market conditions remain soft. The Committee described risks to the outlook as broadly balanced and reiterated that future policy moves will be guided by incoming economic and inflation data.

The Reserve Bank of New Zealand lowered its official cash rate by 25 bps to 2.25% at its final meeting of the year, a widely expected move that brought borrowing costs to their lowest level since mid-2022. Policymakers said the decision reflected significant spare capacity in the economy and easing inflation pressures. Annual CPI rose to the top of the 1–3% target band in Q3, but core and non-tradables inflation continue to moderate, supporting expectations for inflation to return to 2% by mid-2026. Economic activity remained weak through mid-2025, with GDP contracting in Q2, though near-term indicators suggest a gradual recovery. The central bank noted balanced risks, cautioning that weak household and business confidence could restrain the recovery, while stronger housing or export-driven demand could keep inflation more persistent. The MPC said future moves depend on the economic and inflation outlook.