New Zealand's Consumer Price Index (CPI) rose by 0.7% in the September quarter, bringing the annual inflation rate to 3.7%. Although this figure was slightly below the expected 3.8%, it has intensified market focus on a hawkish stance from the Reserve Bank of New Zealand (RBNZ). Consequently, expectations are growing for a 25 basis point hike in the Official Cash Rate (OCR) during next week's meeting.
New Zealand's CPI rose 0.7% in Q3 2026, leading markets to price in a 25 basis point interest rate hike at the upcoming central bank meeting.
Read the full storyNew Zealand's annual CPI slowed to 3.7% in the third quarter, trailing the 3.8% forecast and potentially easing pressure on the central bank regarding future rate hikes.
Markets are pricing an 80% probability of a 25bp RBNZ rate hike as annual inflation is expected to slow to 3.8% in the third quarter.