RBNZ August rate cut is on the table, but not guaranteed

RBNZ Governor Christian Hawkesby – hawk or dove? (Image: NZME)

Thu, 10 Jul 2025

The central bank temporarily hit the pause button, but an August rate cut depends on how the data pans out. The Reserve Bank (RBNZ) opted to keep the Official Cash Rate (OCR) on hold at 3.25% but “subject to medium-term inflation pressures continuing to ease in line with the committee’s central projections, the committee expects to lower the Official Cash Rate further, broadly consistent with the projection outlined in May”, it said.Plenty more to come“We continue to expect that the RBNZ will cut the OCR by 25bps at...

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