According to Jinshi Data, TD Securities strategist Prashan Newnaha said that there is a certain urgency for the Reserve Bank of New Zealand to start cutting interest rates. Since 2022, the economy has been in and out of recession, and economic activity data show that the growth outlook has further deteriorated, so the conditions for a rate cut are in place.

He added that the output gap of the New Zealand economy is likely to become more negative as there are clear signs that the labor market is slowing. Inflation has fallen as expected and inflation expectations are falling. It would be more cautious for the Reserve Bank of New Zealand to cut interest rates by 25 basis points next week.