2026.02.2002:34:20UTC+00Kiwi Dollar Hits 4-Week Low

The New Zealand dollar weakened to around $0.595, a four-week low, as expectations for a near-term interest rate hike faded. Reserve Bank Governor Anna Breman said the economy has scope to recover this year without stoking excessive inflation, noting that price pressures are easing gradually and signaling limited need for aggressive tightening.

Her remarks followed the central bank’s decision earlier this week to leave the cash rate unchanged, while reiterating that monetary policy will remain supportive as inflation slowly returns toward the midpoint of the target band over the coming year. Breman also indicated that a rate increase later in 2026 remains possible but is not fully priced in and will depend on how economic conditions evolve relative to current projections.

Market pricing now implies only a 40% probability of a September rate hike, down from 68%, while the chance of an October increase has slipped to 68% from 100%. For the week, the New Zealand dollar is on track to post a decline.