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Central bank · New Zealand·NZD

Reserve Bank of New Zealand

The RBNZ sets New Zealand monetary policy via the Monetary Policy Committee, meeting 7 times per year. Track the OCR, Monetary Policy Statement, Orr statements and how RBNZ moves drive NZD/USD and kiwi crosses.

Policy rate
3.25%
Official Cash Rate (OCR)
Effective
2026-05-28
Next meeting
2026-07-09
Cadence
7 times per year
TL;DR

The RBNZ was the first major central bank to start cutting in August 2024 — a cycle leader. The OCR is the policy anchor. The Monetary Policy Statement (4 of 7 meetings) publishes the OCR track. Statement language and the OCR projection carry the biggest market reactions.

About the RBNZ

The Reserve Bank of New Zealand was established in 1934 and gained operational independence in 1989, becoming the world's first inflation-targeting central bank. Headquartered in Wellington. Monetary policy is set by the Monetary Policy Committee (MPC), composed of the Governor + 6 members (3 internal, 3 external) since the 2018 reform.

The RBNZ's mandate is dual: maintain inflation at 1-3% (2% midpoint) and support maximum sustainable employment. The dual mandate was added in 2018 — before that, the RBNZ had a pure inflation mandate going back to the 1989 Reserve Bank Act, the world's first explicit inflation-targeting framework.

The Official Cash Rate (OCR) is the policy rate. Set by the MPC at each meeting. The settlement cash account rate (paid to banks) tracks OCR, anchoring NZD money markets. The RBNZ has historically been a cycle leader — first to start tightening (2021) and first to start cutting (2024) among G10 central banks.

Mandate & framework

Framework
Inflation targeting: 1-3% CPI, with 2% midpoint
Inflation target
1-3% CPI band, 2% midpoint, over the medium term

What drives RBNZ policy

  • CPI inflation (quarterly, late month of cycle quarter): the targeted measure within the 1-3% band.
  • Sectoral factor models: RBNZ-specific composite measures of underlying inflation.
  • Wage data via the Labour Cost Index (LCI) and Quarterly Employment Survey (QES).
  • Whole Milk Powder (WMP) prices via the Global Dairy Trade (GDT) auctions (fortnightly).
  • Migration data — net migration shifts directly affect aggregate demand in the small NZ economy.
  • OCR track in the Monetary Policy Statement (4 of 7 meetings) — the projected policy path.

Recent actions

2026-05-28
Cut OCR by 25bp to 3.25% from 3.50%, continuing dovish path
2026-02-19
Cut by 50bp to 3.50% from 4.00% — aggressive easing on cooling CPI
2025-11-26
Cut by 50bp to 4.00% from 4.50%
2025-08-14
Started cutting with 25bp to 5.25% — first G10 cut of the cycle
2023-05-24
Last hike to 5.50%, the cycle peak

People also ask

What is the Reserve Bank of New Zealand?

New Zealand's central bank, established 1934. World's first inflation-targeting central bank (1989). Operationally independent since 1989. Sets monetary policy via the 7-member MPC, regulates banks (RBNZ-supervised), and issues banknotes. Headquartered in Wellington.

When does the RBNZ meet?

The MPC meets 7 times per year. Decisions are announced at 02:00 UTC (14:00 NZ) on Wednesdays. Press conferences follow at 03:00 UTC. Four meetings (February, May, August, November) include the Monetary Policy Statement with full forecasts and the OCR projection track.

What is the OCR?

The Official Cash Rate. Set by the RBNZ MPC at each meeting. It is the rate the RBNZ uses for managing settlement cash accounts. NZD money market rates trade close to OCR. OCR was -25bp during COVID, peaked at 5.50% in 2023, and is being cut through 2024-26.

What is the OCR track?

The projected OCR path published in the Monetary Policy Statement (4 of 7 meetings per year). Shows the RBNZ's expectation of where the policy rate will be at quarterly intervals over the next 3 years. Every 25bp shift in the projected track over 12 months moves NZD/USD 1-1.5%.

How does the RBNZ affect NZD/USD?

Hawkish RBNZ signals widen the RBNZ-Fed spread, lifting NZD/USD. Dovish signals do the opposite. The OCR track in MPS meetings is the cleanest leading indicator. RBNZ has historically led G10 cycle turns — first to hike (2021), first to cut (2024).

Why did the RBNZ cut first?

The RBNZ started cutting in August 2024 — the first G10 central bank to do so this cycle — because NZ inflation cooled faster than peers. NZ CPI returned to the 1-3% band by Q2 2024. The compact economy and rate-sensitive housing market also forced earlier action.

Who is the RBNZ Governor?

Adrian Orr, in role since 2018, reappointed for a second 5-year term in 2023. Career central banker and economist. Has navigated the COVID emergency, the post-pandemic tightening cycle, and the 2024-26 cutting cycle as cycle leader among G10 banks.

FX pairs affected by RBNZ policy

Primary sources