ASB Bank says bar is high for official cash rate cut in July

The Reserve Bank cut rates by 25 basis points to 3.25% in late May. (Image: NZME)

Wed, 04 Jun 2025

The bar is high for a July rate cut, ASB Bank says.“It would take a significant deterioration in key US trade negotiations or other strong evidence that NZ inflation is rapidly cooling for the RBNZ to follow through with a July cut,” ASB senior economist Mark Smith said. While it can’t be ruled out, “there is value in waiting”. The Reserve Bank of New Zealand (RBNZ) cut rates by 25 basis points to 3.25% in late May and its official cash rate forecasts indicate it expects to cut rates further. However...

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