NZ Monetary Policy Statement - February 2026

The seasonally adjusted Wage Price Index (WPI) rose 0.8% this quarter. • Over the twelve months to the December quarter, the WPI rose to 3.4%. • Across both the private and public ...

tables

Annual consumers price inflation was slightly above the Monetary Policy Committee’s 1 to 3 percent target band at the end of 2025. Increases in food and electricity prices and local council rates were the biggest contributors to above-target inflation. The economy is at an early stage in its recovery. With ongoing strength in commodity prices, economic activity in the agricultural sector and regional New Zealand remains strong. Although residential and business investment is increasing, households remain cautious in their spending. The labour market is stabilising, but unemployment remains elevated. House price growth remains weak, dampening household wealth and inclination to spend. In response to previous cuts in the OCR, economic growth is broadening across sectors of the economy, such as manufacturing, construction and some retail. Economic growth is expected to increase over 2026. Inflation is most likely returning to within the Committee’s 1 to 3 percent target band in the current quarter. The Committee is confident that inflatio The Monetary Policy Committee today agreed to keep the Official Cash Rate on hold at 2.25%. Inflation is expected to be back within our 1-3% target range in the first quarter of 2026. The economy is at an early stage of recovery, and growth is expected to increase over 2026. Any… pic.twitter.com/0RyKUNIFRZ RBNZ SAYS INFLATION IS LIKELY TO RETURN TO THE 1–3 PERCENT TARGET RANGE WITHIN THE CURRENT QUARTER. ... RBNZ says despite growth in residential and business investment, household spending continues to be cautious. RBNZ says as the recovery gains momentum and inflation moves steadily toward the midpoint of the target range, monetary policy will be normalized gradually.