New Zealand Dollar Hovers Near 1-Month High
The New Zealand dollar edged up to $0.569, trading near a one-month high, as expectations of further monetary tightening by the Reserve Bank supported the currency. Although inflation eased slightly more than expected in the third quarter, analysts expect price pressures to pick up again, potentially pushing inflation well above 4% in the fourth quarter and keeping it outside the RBNZ’s 1-3% target range for longer than previously anticipated. This outlook was reinforced by rising energy prices amid heightened tensions in the Middle East. Markets are almost certain that the RBNZ will deliver a third rate hike next week, bringing the OCR to 3.0%. Beyond that, some economists project the OCR to climb to 3.75% by the first quarter of next year or peak at 4% in the second half of 2027. The kiwi has gained 0.7% this week, marking its second consecutive weekly advance.
The New Zealand dollar edged up to $0.569, trading near a one-month high, as expectations of further monetary tightening by the Reserve Bank supported the currency. Although inflation eased slightly more than expected in the third quarter, analysts expect price pressures to pick up again, potentially pushing inflation well above 4% in the fourth quarter and keeping it outside the RBNZ’s 1-3% target range for longer than previously anticipated. This outlook was reinforced by rising energy prices amid heightened tensions in the Middle East. Markets are almost certain that the RBNZ will deliver a third rate hike next week, bringing the OCR to 3.0%.
Beyond that, some economists project the OCR to climb to 3.75% by the first quarter of next year or peak at 4% in the second half of 2027. The kiwi has gained 0.7% this week, marking its second consecutive weekly advance.