Reserve Bank of New Zealand Holds OCR at 2.25% as Governor Breman Chairs First Meeting

The Reserve Bank of New Zealand held its official cash rate at 2.25% on 18 February 2026, with the Monetary Policy Committee reaching a consensus to keep the rate unchanged as new Governor Anna Breman presided over her inaugural monetary policy meeting since assuming the role.

With the rate now sitting at 2.25%, policymakers expect monetary policy to remain accommodative for some time, with inflation expected to fall back towards the 2% target midpoint.

UPGRADED OCR TRACK

Alongside the hold decision, the RBNZ published a revised and upgraded OCR track. The upgraded projections indicate that the first rate increase may arrive in late 2026.

Households remain cautious in their spending, but key measures of employment strengthened in the December quarter and economic activity is recovering, albeit unevenly. At the same time, the RBNZ made clear that it would proceed carefully and that no tightening was imminent.