According to Jinshi, although the New Zealand economy has fallen into a double-dip recession, the Reserve Bank of New Zealand may fight back against investors' expectations of a rate cut this week. According to a Bloomberg survey of 15 economists, the Reserve Bank of New Zealand will keep the official cash rate unchanged at 5.5% for the sixth consecutive time on Wednesday. They expect policymakers to emphasize the need to keep interest rate limits for a longer period of time to curb inflation.

Kelly Eckhold, chief New Zealand economist at Westpac, said the market had taken a more aggressive view on the timing and extent of the central bank's rate cuts, but this time, those expectations would be hit. Most economists expect the first rate cut from the Reserve Bank of New Zealand to be in the fourth quarter, although some believe it will be as early as August. Westpac and ANZ do not expect rate cuts to begin until early 2025.