Business news for 27 October 2026
Oct 26, 2026 · 7 min · 7 segments
An early morning update from RNZ's business team.
- Speakers
Gyles Beckford
Ingrid HipkissHost
Oct 26, 2026 · 7 min · 7 segments
An early morning update from RNZ's business team.
Gyles BeckfordIngrid HipkissHost
Now, the Reserve Bank faces a line ball decision tomorrow on whether to raise the official cash rate to get on top of inflation, which looks to have got a bit of a second wind.
Well, in some people's eyes, it will be damned if it does raise the cash rate.
But last meeting, the RBNZ signalled that it was likely to halt the rate rises as it assessed the impact of the previous two hikes.
The soft New Zealand dollar is adding to imported inflation pressures.
Some forecasts are for inflation to hit 4.7% by the end of this year.
Forecasters and financial markets are overwhelmingly backing a rate rise tomorrow.
He says the Monetary Policy Committee may be divided on a rate rise, but not to raise has a downside.
Well, they'd be taking a view by not moving of saying that actually, even though the short term inflation outlook looks more threatening, that the medium term outlook hasn't shifted that much.
And that might be a reasonable perspective, actually, but it obviously will be a bit risky given what is looking like a fairly chunky CPI number when we see the fourth quarter data, which is going to come out in early January.
Kelly Echol says a rise tomorrow, one in December and another in February, would take the cash rate to 3.5%.
That's in the Reserve Bank's neutral zone, the one that doesn't put the brakes on the economy.
It also doesn't give it too much pep and then allow for a couple of more gradual rises to a peak of around 4%, perhaps September next year.
Now, the Reserve Bank faces a line ball decision tomorrow on whether to raise the official cash rate to get on top of inflation, which looks to have got a bit of a second wind.
Well, in some people's eyes, it will be damned if it does raise the cash rate.
But last meeting, the RBNZ signalled that it was likely to halt the rate rises as it assessed the impact of the previous two hikes.
The soft New Zealand dollar is adding to imported inflation pressures.
Some forecasts are for inflation to hit 4.7% by the end of this year.
Forecasters and financial markets are overwhelmingly backing a rate rise tomorrow.
He says the Monetary Policy Committee may be divided on a rate rise, but not to raise has a downside.
Well, they'd be taking a view by not moving of saying that actually, even though the short term inflation outlook looks more threatening, that the medium term outlook hasn't shifted that much.
And that might be a reasonable perspective, actually, but it obviously will be a bit risky given what is looking like a fairly chunky CPI number when we see the fourth quarter data, which is going to come out in early January.
Kelly Echol says a rise tomorrow, one in December and another in February, would take the cash rate to 3.5%.
That's in the Reserve Bank's neutral zone, the one that doesn't put the brakes on the economy.
It also doesn't give it too much pep and then allow for a couple of more gradual rises to a peak of around 4%, perhaps September next year.
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