The New Zealand dollar experienced its biggest intraday drop against the Australian dollar in nearly six years after the Reserve Bank of New Zealand decided to maintain its policy rate at 2.75%. This move surprised economists and traders who had anticipated a rate hike to combat inflation. The decision came as inflation in New Zealand remained above the central bank's target, raising questions about the timing of future monetary policy adjustments. The kiwi currency also weakened against the US dollar, reflecting broader market uncertainty about global interest rate trends. Analysts suggest the RBNZ may delay rate increases to allow for more data on inflation trends and economic growth.
October 28, 2026
NZ Dollar Drops Most vs Aussie Since 2017 on RBNZ Decision
The New Zealand dollar fell sharply against the Australian dollar, marking its largest decline since 2017, following the RBNZ's decision to keep rates unchanged.
Impact
The RBNZ's decision to hold rates may lead to further pressure on the New Zealand dollar, especially against currencies with higher interest rates like the Australian and US dollars.