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      RBNZ Chief Economist Signals Potential Rate Hike Amid Inflation Pressures

      The Reserve Bank of New Zealand (RBNZ) is keeping its options open regarding its upcoming interest rate decision, with chief economist Paul Conway stating that the late-October meeting is 'completely open.' Conway emphasized that while the central bank is leaning towards a potential increase in the official cash rate (OCR), it has not yet determined the timing of such a move.

      Conway's remarks, made during the International Monetary Fund and World Bank meetings in Bangkok, suggest that the RBNZ is considering a 25 basis point hike but is also prepared to maintain the current rate. He noted that recent fluctuations in oil prices and the New Zealand dollar have contributed to short-term inflationary pressures, although the bank remains optimistic about inflation returning to its target range of 1% to 3% next year.

      The RBNZ's cautious approach contrasts with recent developments in Australia, where weaker job data has led to reduced expectations for a rate hike by the Reserve Bank of Australia. This divergence in monetary policy outlooks may support the New Zealand dollar against the Australian dollar, as traders react to the differing economic signals from both countries. The upcoming decision will hinge on whether the current inflation pressures warrant immediate action or if the RBNZ can afford to wait for more data before making a move.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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