RBNZ Leaves Official Cash Rate Unchanged at 2.25%

• Published on
• 18 Feb 2026, 12:20 PM

By Sophia Rodrigues

(Sydney, February 18, 2026) – The Reserve Bank of New Zealand left the Official Cash Rate unchanged at 2.25%, in line with expectations. 

The central bank cited food, and local council and electricity price increases as the key reasons for inflation's rise above the 2-3% target band in the December 2025 quarter. It expressed confidence inflation will return within the target band in the current quarter, and slow further to the 2% target midpoint over the next 12 months.

The decision was reached by consensus.

The RBNZ said monetary policy settings will gradually normalise as the economic recovery gains steam and inflation falls sustainably towards the target midpoint.

Below are the key headlines:

--June 2026 OCR track 2.3% vs 2.2% in November
--Dec 2026 OCR track 2.4% vs 2.3% 
--Jun 2027 OCR 2.6% vs 2.5%
--Peak OCR 3% Sep 2028 vs 2.9%
--Monpol expected to remain accommodative for some time
--As recovery strengthens, monpol will gradually normalise
--Forward OCR path reflects somewhat stronger econ outlook and balance inflation risks
--Inflation expectations slightly higher for forecasters, businesses but households continue to decline
--Further downward mortgage rate adjustment sees less than assumed in Nov

--Contact: Sophia@centralbankintel.com