New Zealand's economy 🇳🇿 fell into recession in the third quarter, as the decline in economic activity was far greater than expected, and output was cut in the previous quarter, with further interest rate cuts anticipated.

Market expectations for the Reserve Bank of New Zealand (RBNZ) to continue cutting rates, after already lowering them by 1.25% to 4.25%, have increased.

Current swap rates indicate a 70% chance of a 0.5% rate cut in February, with expectations that rates will drop to 3.0% by the end of 2025.