RBNZ Chief Economist Signals October Rate Decision Remains ‘Completely Open’ Amid Hike Bias
| Pair | Now | Since publish |
|---|---|---|
| NZDUSD | — | — |
| AUDNZD | — | — |
- RBNZ’s Conway states late-October rate decision is “completely open.”
- 25bp hike remains an option, with an increase “most likely.”
- NZD gains, NZD/USD up 0.53%.
Reserve Bank of New Zealand (RBNZ) Chief Economist Paul Conway indicated that the central bank’s upcoming interest rate decision in late October is “completely open.” Conway highlighted the RBNZ’s desire to maintain optionality between holding the Official Cash Rate (OCR) and implementing a 25 basis point hike, noting that an OCR increase remains the most probable outcome despite confidence that inflation will return to its 1% to 3% target band next year. This stance keeps the prospect of a tightening move alive, providing support for the New Zealand dollar. Following the comments, the NZD/USD pair gained 0.53%, trading around 0.5630, while the RBNZ’s hawkish bias contrasts with a more dovish-leaning Reserve Bank of Australia, creating a divergence that impacts pairs such as AUD/NZD.