Home›Forex›Central Banks›NZ rate hike and more tightening seen boosting NZ doll…

NZ rate hike and more tightening seen boosting NZ dollar

The RBNZ raised its policy rate 25 basis points to 2.5% and indicated further tightening could follow.

Thursday, July 9, 2026 · Written up by our desk · Central Banks

ABN AMRO said the New Zealand Dollar has support after the Reserve Bank of New Zealand lifted its policy rate by 25 basis points to 2.5% and signalled that more tightening is likely.

The bank noted that even with some easing in energy prices, it sees persistent inflation pressures and room for a further reduction in stimulus.

With markets pricing additional hikes, ABN AMRO expects the NZD to have modest upside versus the US dollar.

The view is tied to the idea that tighter policy would remain in focus if inflation stays elevated, sustaining demand for the NZD relative to USD.

More like this

Sources