RBNZ Expected to Hike Rates by 25bps as BoC Leaves Rates Unchanged

The Reserve Bank of New Zealand (RBNZ) is expected to hike interest rates by 25 basis points in their September meeting, according to Continuum Economics. This would be a hawkish surprise if they decided to increase rates by 50 basis points instead.

Meanwhile, the Bank of Canada meets on September 2 and is likely to leave rates unchanged at 2.25%. Despite heightened trade tensions with the United States, there are no signs that near-term easing will be considered.

The Canadian economy faces inflationary risks due to Middle East tensions and trade retaliation, but the Bank of Canada expects its next move to be a tightening, not until Q2 2027. The bank has left rates unchanged since October 2025 and is waiting for the right moment to tighten monetary policy.