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RBNZ done cutting, but no hikes before H2 2027

In line with our long-held forecast, the Reserve Bank of New Zealand cut rates to 2.25% at its meeting today and signalled that its easing cycle has now come to an end. As the recovery gains traction, the Bank expects to start normalising policy again in early-2027. However, with spare capacity being slow to dissipate, we suspect rates hikes will come onto the agenda only in the second half of that year.

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