The New Zealand dollar rose at the Reserve Bank of New Zealand’s (RBNZ) Oct. 19 reference fixing before inflation data due this week gives the central bank new evidence for its Oct. 28 interest rate decision.
The RBNZ recorded $0.56565 per New Zealand dollar, compared with $0.56255 on Oct. 16 and $0.56055 on Oct. 15. Its Oct. 19 fixing was taken at 9 p.m. ET on Oct. 18 (01:00 UTC on Oct. 19). The figures are snapshots at a set time, rather than daily closing prices.
A separate calculation points to a slightly higher rate later on Oct. 19. The European Central Bank’s reference rates of $1.1225 and NZ$1.9792 per euro work out to about $0.5672 per New Zealand dollar. That figure is derived from two euro rates, rather than a direct dollar quote.
Stats NZ is scheduled to release its September 2026 quarter consumer price index on Oct. 22. In its latest full report, prices rose 1.5% in the June quarter and 4.1% from a year earlier. The annual reading was above the RBNZ’s medium-term inflation target of 1% to 3%.
Stats NZ’s selected price indexes showed petrol prices rising 6.4% and diesel prices rising 7.8% from August to September. Those monthly figures cover selected items, not the full quarterly index. The RBNZ attributed much of the June-quarter inflation increase to fuel costs associated with the Middle East conflict.
Higher fuel costs leave households with less to spend, the RBNZ has said. It has also said a sustained weaker New Zealand dollar would raise import prices while increasing exporters’ revenue in the local currency.
Bank of New Zealand (BNZ) forecasts a 0.8% quarterly price increase and 3.9% annual inflation for the September quarter. Westpac New Zealand forecasts 0.7% and 3.7%, respectively. The RBNZ’s September projection put annual inflation at 3.9% for the quarter.
A 25-basis-point increase on Sept. 2 brought the RBNZ’s Official Cash Rate to 2.75%. The bank has said future decisions depend on its assessment of inflation risks. Its next rate decision is scheduled for Oct. 28, after the new inflation figures are released.
