29 October 2026

Retailers will be feeling a bit of whiplash after the Reserve Bank’s surprise decision to hold the Official Cash Rate at 2.75% caused the Kiwi dollar to tumble, says Retail NZ Chief Executive, Carolyn Young.

“The decision to hold would have first given retailers a reason to celebrate, with the hope a stable OCR would result in improved consumer confidence,” Ms Young says.

“But the falling dollar that has resulted from the decision, particularly the large drops against the US and Australian, will have come as a blow to those who import the majority of their goods.”

Ms Young, who heads the peak body representing retailers in Aotearoa, says unfortunately, many New Zealand retail businesses rely on goods imported from overseas.

“Stores that sell everything from groceries to vehicles, books to electronics, power tools to toys, and apparel to footwear, are reliant on bringing in stock from overseas. The Kiwi dollar has been underperforming for many months already, and so the sector will be hoping this further drop will be a momentary blip, rather than sustained trend.”

Ms Young says on the bright side, most retailers will have brought in their stock for the peak season already, and if the OCR hold results in a boost to consumer confidence, the sector could be in for a successful seasonal trading period to end the year.

For further information or to set up an interview, please contact Carolyn Young on 021 449 452

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