New Zealand’s central bank maintains its Monetary Policy Committee size after a split May decision, with housing data showing mixed signals.
The Reserve Bank of New Zealand will retain its six-member Monetary Policy Committee, with three internal and three external members, ahead of the November election. The decision follows a 3-3 split vote in May, where external members supported a rate hike, and the governor’s tiebreak secured a hold. Appointments are made by the Minister of Finance, and no changes are expected before the election period.
New Zealand’s building consents in May declined 4.0% month-on-month after an 11% rise in April, though year-on-year approvals surged 19% to 39,737 dwellings. Residential activity remains elevated, while non-residential values show weakness. The data precedes the RBNZ’s July 8 policy meeting, where the committee’s stance will be closely watched.
The central bank’s governance structure was also influenced by the appointment of Angus McGregor as assistant governor for financial stability, a role previously part of the MPC’s remit. The July meeting will assess economic conditions amid mixed housing signals and persistent inflation concerns.