Weak NZD may curb RBNZ's appetite for Feb 50bp rate cut

Questions are being raised about RBNZ Governor Adrian Orr's plans to cut in February. (Image: BusinessDesk)

Mon, 13 Jan 2025

Ongoing US dollar strength continues to clip the New Zealand dollar’s wings, and the inflationary fallout could see the Reserve Bank of NZ think twice about a 50-basis point rate cut next month. “There’s a lot of water to go under the bridge yet, but the anticipated 50 basis point cut by the RBNZ [Reserve Bank of NZ] in February should not be considered a done deal. Indeed, we think there is much more chance of a 25 than a 75,” BNZ senior economist Doug Steel said. The market is widely expecting the RBNZ to cut...

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