Geoff Yu reports that the RBNZ will keep its Monetary Policy Committee at six members ahead of the November election, after a split 3-3 vote in May where external members backed a hike. New Zealand building consents show softer monthly approvals but strong year-on-year growth, with elevated residential activity and weaker non-residential values, framing the backdrop for the July 8 policy meeting.

Policy committee stance and consents

"The RBNZ has said it will not add an extra member to its Monetary Policy Committee before the November election, leaving the panel with three internal and three external members. The central bank said MPC appointments are made by the Minister of Finance, and the governor, as chair, is not seeking an additional internal appointment ahead of the election period."

"The move follows the appointment of Angus McGregor as assistant governor for financial stability, a role that in the past was part of the MPC’s remit. The committee next meets on July 8, after a split 3-3 vote in May, when external members backed a rate hike and the hold decision was decided by the governor’s tiebreak."

"New Zealand’s building consent data for May showed a mixed picture. The seasonally adjusted number of new dwellings granted consent fell 4.0% m/m in May, after rising 11% m/m in April. On a y/y basis, the actual number of new dwellings granted consent rose 19% y/y to 39,737 in the year ended May 2026."

"The monthly total was 3,801 new consented dwellings, led by stand-alone houses and townhouses/flats/units. By region, consent issuance was strongest in Canterbury and Auckland over the year."

"Overall, the data suggest residential approvals remained elevated versus a year earlier despite a softer monthly outcome."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)