Rate cut expectations hinge on domestic inflation falling

Inflation has been too high for too long. (Image: Getty)

Tue, 16 Jul 2024

Domestic inflation will take centre stage on Wednesday, and any downward surprise will likely move the rate-cut needle. The Reserve Bank of New Zealand (RBNZ) surprised markets last week with a more dovish-than-expected statement, and markets moved to price in rate cuts as early as August. Most economists, however, are signalling that November is more likely. Kiwibank economist Mary Jo Vergara said consumer price growth likely slowed slightly over the second quarter to 0.5% from 0.6%. “On an annual basis, cooling cont...

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