China's slowdown pushes New Zealand exporters to diversify away from their top buyer, RBNZ official tells CNBC
New Zealand exporters are diverting shipments bound for China to new markets, as demand from the country's top buyer cools, a central bank official tells CNBC.
The Reserve Bank of New Zealand (RBNZ) increased the Official Cash Rate (OCR) by 25 basis points to 2.75%, signaling a cautious approach to tightening monetary policy. RBNZ emphasized the need to prevent fuel-driven inflation from becoming entrenched in broader price-setting behavior and inflation expectations. While policymakers indicated that further rate hikes remain possible, they stressed that gradual tightening now would reduce the risk of aggressive rate hikes later.
The RBNZ is anticipated to remain data-dependent until the next Monetary Policy Statement on October 28th, with key releases including Q2 2026 GDP and Q3 2026 CPI. The forecast currently stands at maintaining the OCR at 2.75% over the forecast horizon, with reassessment pending significant shifts in the balance of growth and inflation risks.
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