- RBNZ is expected to cut the Official Cash Rate by 50 basis points, with major banks and financial markets anticipating the move, putting downward pressure on the New Zealand dollar.
The Reserve Bank of New Zealand (RBNZ) is widely expected to slash the Official Cash Rate by 50 basis points this Wednesday, a move that’s adding pressure on the New Zealand dollar.
A Reuters survey of 28 economists reveals that 60% anticipate the central bank will deliver a half-point cut, while market pricing suggests near-certainty of such a decision. Major banks—ANZ, ASB, BNZ, Kiwibank, and Westpac—are all forecasting a similar outcome.
The kiwi has fallen to $0.611, down 3.33% since last Monday, extending its decline into a key technical zone, marked by the 50-, 100-, and 200-day moving averages, as well as the 50% retracement level from the July rally.
Meanwhile, escalating tensions in the Middle East are further driving investors into the safe-haven U.S. dollar.
