'Far from simple': RBNZ likely to hit pause as market eyes future cuts

If the RBNZ hits pause on its rate-cutting cycle this Wednesday, it will be the first time since last August. (Image: Depositphotos)

Rebecca Howard

Mon, 07 Jul 2025

The central bank is widely expected to hit the pause button on Wednesday on a rate-cutting cycle that began last August.The official cash rate is at 3.25% versus 5.5% 12 months ago.The pause, however, is likely to be temporary. The New Zealand rates market only prices a 15% chance of a 25-basis point cut this week, but is still pricing at least one and possibly two more 25bps rate cuts by November.Economists agree a pause is likely, but ANZ Bank economists said the decision is “far from simple” and the market is underestimating...

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