Reserve Bank of New Zealand Holds Official Cash Rate at 4.75% as Dairy Terms of Trade Improve
Monetary Policy Committee assesses cooling capacity pressures, noting stabilizing headline CPI alongside firm global export demand for New Zealand agricultural commodities.
By Dr. Evelyn Thorne, Ph.D. in Economics • Reviewed by David Sterling, CFA • Updated November 4, 2026
Primary Source: Reserve Bank of New Zealand (RBNZ)
The Monetary Policy Committee of the Reserve Bank of New Zealand (RBNZ) held the Official Cash Rate (OCR) at 4.75% at its scheduled review in Wellington.
Export Terms of Trade & NZX 50
- Inflation Target Band: Annual consumer price inflation returned to the Committee’s 1.0% to 3.0% target band, supported by declining import prices and moderate domestic wage growth.
- Dairy Terms of Trade: Global Dairy Trade (GDT) auction pricing rebounded 2.4%, boosting farmgate payout forecasts for Fonterra cooperative suppliers and regional agricultural liquidity.
- S&P/NZX 50 Index: The benchmark Wellington index added 0.5%, driven by gentailer utilities Meridian Energy and Contact Energy alongside healthcare exporter Fisher & Paykel.
Governor Adrian Orr noted that restrictive monetary policy has successfully reduced excess demand in the New Zealand economy, allowing inflation expectations to re-anchor securely.
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