Sumitomo Mitsui Tokyo chief FX strategist Hirofumi Suzuki said the RBNZ’s pause was unexpected. Recent rises in long-term yields and equity declines have tightened New Zealand financial conditions, making a rate hold more likely. Still, with the RBA and other major central banks maintaining a hawkish stance, Suzuki said the RBNZ has little choice but to keep a hawkish tilt; he expects cautious further rate hikes and sees downside pressure on the NZD.

2026-10-28

Sumitomo Mitsui Tokyo chief FX strategist Hirofumi Suzuki said the RBNZ’s pause was unexpected. Recent rises in long-term yields and equity declines have tightened New Zealand financial conditions, making a rate hold more likely. Still, with the RBA and other major central banks maintaining a hawkish stance, Suzuki said the RBNZ has little choice but to keep a hawkish tilt; he expects cautious further rate hikes and sees downside pressure on the NZD.