RBNZ Governor Anna Breman said in speech that the central bank remains confident inflation will return to target despite its current 3.1% reading. She expects inflation to move back inside the 1–3% band in the first quarter and ease toward the 2% midpoint over the 12 months. That formed a key basis for the decision to keep the OCR unchanged at 2.25% this week.
Breman stressed that policymakers needed to determine whether the recent uptick in inflation signaled broader price pressures or merely a “temporary bump”. She pointed to global factors lifting tradables prices, while non-tradables inflation continues to decline, albeit slowly.
The economy expanded in the September quarter and indicators suggest recovery is continuing into early 2026. With unemployment still elevated and wage growth subdued, the RBNZ sees room for recovery without reigniting inflation.
At the same time, she reiterated that monetary policy is “not on a preset course”.
