ANZ Bank: Reserve Bank of New Zealand may pause interest rate cuts in July.

New Zealand's GDP data for the first quarter of 2025 shows that the country's economic growth at the beginning of the year is stronger than the previous expectations of the Reserve Bank of New Zealand. ANZ Bank economist Matthew Galt has stated that this increases the likelihood of the central bank pausing its easing cycle in July, which is also largely the view of the market. However, there is still a significant amount of spare capacity in the New Zealand economy, which is suppressing core inflation. It will take a period of strong growth for the economy to recover to normal levels. He also mentioned that there are risks of a noticeable slowdown in economic growth in the second quarter.