RBNZ rate cut fully priced, but not everyone agrees

(Image: NZME)

Mon, 26 May 2025

A 25-basis-point Official Cash Rate rate cut to 3.25% is all but guaranteed this week, but not everyone is convinced it’s the best course of action.Three out of eight members of the New Zealand Institute of Economic Research’s shadow board in fact recommended the Reserve Bank (RBNZ) pause on Wednesday.“It is not yet clear that downside risks for global and domestic growth outweigh upside risks for inflation,” said Viv Hall, Emeritus Professor in the School of Economics and Finance at Victoria University of Wellington.Inf...

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