New Zealand Central Bank Signals Further Rate Cuts Amid Global Trade Tensions
The Reserve Bank of New Zealand is poised to deliver its sixth consecutive interest rate cut, with markets pricing in a 25-basis-point reduction to 3.25% at Wednesday’s policy meeting. Only one outlier among 23 surveyed economists anticipates a more aggressive 50-point move. The central bank’s forward guidance is expected to signal rates falling below 3% by year-end as trade tensions between the US and China continue weighing on economic prospects.
Westpac’s chief economist Kelly Eckhold projects the Official Cash Rate could bottom NEAR 2.9% by 2025, noting the RBNZ will likely maintain a data-dependent easing bias. The monetary policy committee has repeatedly cited US tariff policies as creating sustained downside risks to both growth and inflation targets.
