Reserve Bank expects rates to go lower despite easing-bias debate

RBNZ Chief Economist Paul Conway. (Image:NZME)

Tue, 03 Jun 2025

Reserve Bank of New Zealand's chief economist, Paul Conway, says the monetary policy committee supports a central forecast pointing to a lower cash rate despite debate about whether it has dropped its easing bias. The Reserve Bank of NZ (RBNZ) cut rates by 25 basis points last week to 3.25%, and its central projection shows the rate reaching 2.92% by December and 2.85% by March 2026.This was a slightly deeper easing cycle than forecast in February, when rates were expected to be at 3.14% by December and 3.10% by March.Markets, however,...

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