Goldman Sachs economists predict that the Reserve Bank of New Zealand will gradually cut interest rates to 3.25%

According to Jinshi Data, Goldman Sachs economist Andrew Boak said that New Zealand's GDP contracted by 0.2% in the second quarter, indicating that the country's economy is still sluggish.

He added that the RBNZ would cut interest rates by 25 basis points at each subsequent meeting, reaching a terminal rate of 3.25% by August 2025.

While it is possible the RBNZ could adjust the pace to 50 basis points at some stage, second quarter data was not as weak as the RBNZ forecast, reducing the risk of that happening at the next policy meeting in October.