# RBNZ Holds Rates in 4-3 Vote

> New Zealand's central bank keeps rates steady despite market expectations for a hike, sending the kiwi dollar plummeting.
- Title: RBNZ Holds Rates in 4-3 Vote · BigGo Finance | Shortify
- Summary: New Zealand's central bank keeps rates steady despite market expectations for a hike, sending the kiwi dollar plummeting. New Zealand's central bank held…
- Keywords: reserve bank of new zealand, new zealand dollar, monetary policy committee, official cash rate, inflation, kiwi dollar, monetary policy, finance, markets, RBNZ, Holds, Rates
- Source: BigGo Finance — https://finance.biggo.com/news/26706153-f797-47f9-9179-2934d3ea44d5
- Author: BigGo Finance
- Published: 2026-10-28T11:25:32+00:00
- Read time: 1 min
- Topics: reserve bank of new zealand, new zealand dollar, monetary policy committee, official cash rate, inflation, kiwi dollar, monetary policy, finance, markets
## RBNZ holds rates
New Zealand's central bank unexpectedly held its Official Cash Rate at 2.75% on the 28th, with the Monetary Policy Committee narrowly approving the decision by a 4-3 vote.
## Kiwi dollar plunges
The New Zealand dollar tumbled as much as 1.7% against the US dollar to 0.5586 after the announcement.
## Market reaction
The benchmark NZX 50 equity index fell 0.5% in tandem, and the policy-sensitive two-year government bond yield dropped 12 basis points to 3.82%.
## Economist expectations
Of 25 economists surveyed by the media, only 2 expected rates to stay on hold, with the rest forecasting a quarter-point hike.
## Policy split
Those supporting a hike argued for a quarter-point increase to 3.00% to prevent inflation from becoming entrenched, while those favoring a wait-and-see approach focused on fragile recovery.
## Inflation data
New Zealand's September-quarter inflation ran at 3.7% year-on-year, still above the 1% to 3% target range, with the central bank projecting it to rise to 4.4% in the December quarter.
## Governor Breman
Governor Anna Breman said holding rates was consistent with prior communication and signaled future hikes may come.
## Market impact
Stephen Toplis, head of research at Bank of New Zealand, called the decision 'frankly taken aback' and noted it pushed the kiwi dollar lower, intensifying inflation pressures.
## Election context
The decision comes just 10 days before New Zealand's general election, with economic and inflation outlook a focal issue for voters.
## Key takeaway

New Zealand's central bank held interest rates at 2.75% in a 4-3 vote, causing the kiwi dollar to drop 1.7% against the US dollar.