What is priced in for the Reserve Bank of New Zealand policy meeting?
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On Wednesday, the Reserve Bank of New Zealand (RBNZ) will unveil its latest monetary policy meeting decision, and so far, money markets have priced in a 99% chance to hold the Overnight Cash Rate (OCR) unchanged at 2.25%, according to Prime Market Terminal interest rate probability tool. Source: Prime Market Terminal RBNZ remains neutral, despite red-hot CPI print Economic data in New Zealand provided mixed signals, yet on the hawkish side, GDP figures in Q3 surpassed the bank’s forecast, while the Consumer Price Index (CPI) for Q4 cleared the 3% threshold, coming hotter than expected at 3.1%. This prompted a slight hawkish reaction by the RBNZ’s incoming new Governor Anna Breman, who said in her first speech that “Our directive is explicitly to prioritize maintaining low and stable inflation,” in a speech on December 1, 2025. However, on December 15, despite saying that “indicators show ongoing recovery in economic growth,” it poured cold water on RBNZ’s previously hawkish view, saying that the “OCR is expected to stay at 2.25% for an extended period if economic conditions develop as anticipated.” A Reuters poll revealed that thirty-one economists surveyed predicted the RBNZ will keep the cash rate steady at 2.25% at the February 18 meeting. However, money markets had priced in 37.6 basis points of rate hikes by the RBNZ towards the year’s end, according to Capital Edge Rate Probability tool. Source: Capital Edge (This story was corrected on February 16 at 21:06 GMT to fix a mispelling in RBNZ’s incoming new Governor, Anna Breman) RBNZ FAQs The Reserve Bank of New Zealand (RBNZ) is the country’s central bank. Its economic objectives are achieving and maintaining price stability – achieved when inflation, measured by the Consumer Price Index (CPI), falls within the band of between 1% and 3% – and supporting maximum…
Filed under: News - @ February 16, 2026 9:27 pm