New Zealand eyes August rate cut after ‘dovish pivot’

Market pundits have ramped up their bets that New Zealand may cut interest rates as soon as next month, after an unexpected early “dovish pivot” from the central bank on Wednesday.

While the Reserve Bank of New Zealand left the cash rate at 5.5 per cent for an eighth straight meeting, the highest level since 2008, its statement also said that policy would “be tempered over time, consistent with the expected decline in inflation pressures”.

Bloomberg