We expect the Reserve Bank of New Zealand to cut interest rates by 0.25% to 2.00% at the meeting in early June rather than at the meeting on Thursday 28th April, although we wouldn’t completely rule out a cut next week. Either way, in a change to our forecast, we now expect the RBNZ to eventually cut rates to 1.75%. If we are right, then the New Zealand dollar will surely weaken later this year.
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