RBNZ Unexpectedly Holds Official Cash Rate at 2.75% in Split 4-3 Vote

The Reserve Bank of New Zealand kept its Official Cash Rate unchanged at 2.75% in a 4-3 vote, defying market pricing that reflected a 90% chance of a 25-basis-point hike to 3.00%. All five major domestic banks had projected an increase. The hold followed a slowdown in third-quarter annual CPI inflation to 3.7% from 4.1% in June, alongside subdued wage growth and weak consumer demand. However, three dissenting members voted to raise rates, and policymakers retained a tightening bias as inflation is projected to accelerate to 4.4% in the December quarter.