Market analysis: The New Zealand central bank is expected to cut interest rates next week and will continue on the easing path.

date
12/08/2025
The Reserve Bank of New Zealand appears to be poised to further cut the benchmark interest rate next week, with most economists focusing on the central bank's future expectations. Sharon Zollner, chief economist at ANZ Bank, said that a 25 basis point cut to 3.00% in the benchmark interest rate seems to be a done deal. With soft high-frequency data increasingly showing up in the hard economic data, the Reserve Bank of New Zealand's stance may become more dovish, eventually bringing the benchmark interest rate down to 2.5%. However, Zollner also noted that a significant shift in this direction next week may be premature.