RBNZ rate cut on track but future path holds the key

RBNZ governor Christian Hawkesby. (Image: NZME)

Mon, 26 May 2025

With a rate cut fully priced on Wednesday, all eyes will be on where rates are headed and how quickly they might rise. The Reserve Bank of New Zealand (RBNZ) is expected to cut by 25 basis points to 3.25%. “If it were up to us, we would deliver a 50bp cut to 3%, a level broadly considered neutral, not even stimulatory. But it’s not just about the cut, it’s also about the trajectory. And we're focused on their next move(s),” Kiwibank economists told BusinessDesk. “Even assuming no surprises on th...

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