The Reserve Bank of New Zealand kept its official cash rate unchanged at 2.75% at its October 2026 meeting, defying market expectations for a 25bp hike. The decision was split 4-3, with policymakers focusing on returning inflation sustainably to the 2% midpoint of the target range over the medium term while avoiding unnecessary volatility in output, employment, interest rates and the exchange rate. However, all members agreed that tighter monetary policy would likely be needed, depending on the evolving economic outlook.