The RBNZ Paused To Assess. It Was A Wait And See. And We Still See More Cuts Required

Kiwibank reports the RBNZ paused rate cuts at 3.25%, a widely expected move amid global uncertainty and a temporary inflation spike. Despite this pause, Kiwibank believes further easing is still likely, with medium-term inflation expected below 2%. They advocate for a 2.5% rate, citing significant spare capacity and downside risks to the economy.