According to Odaily, the ASB Bank of New Zealand predicts that the Reserve Bank of New Zealand (RBNZ) is likely to continue its easing cycle, with potential rate cuts in the remaining two meetings of this year. Chief Economist Nick Tuffley noted that the anticipated rate cuts are slightly below market expectations, but the terminal rate of 3% by March 2027 indicates a sustained easing cycle.
Tuffley emphasized that the future path will depend on data, as always. The speed at which inflation pressures decrease will be crucial relative to the current RBNZ forecast. If inflation pressures decline faster than expected, the RBNZ may need to accelerate the rate back to a neutral level of around 3.25%.
