Lates News

A Reuters survey shows that the Reserve Bank of New Zealand is expected to cut interest rates to 3% on Wednesday to support the economy amid controlled inflation and a soft labor market. The central bank kept rates steady at 3.25% in July citing recent inflation risks, but indicated that they may relax monetary policy if price pressures ease. However, the unemployment rate climbed to 5.2% in the second quarter, the highest since the end of 2020. This, combined with overall economic weakness, is likely to prompt the central bank to cut rates to support economic recovery. A Reuters survey conducted from August 11 to 14 shows that over 90% of surveyed economists (28 out of 30) expect the Reserve Bank of New Zealand to lower the Official Cash Rate (OCR) by 25 basis points to 3% on August 20. Two economists expect rates to remain unchanged.