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RBNZ will cut rates to 2.5% by mid-2026

We expect the Reserve Bank of New Zealand to cut its Official Cash Rate by 25bp, to 3.5%, at its next meeting on 9th April. Although activity is now on the mend, spare capacity will ease only gradually, consistent with a sustained decline in domestically-driven inflation. Accordingly, we still believe the Bank will cut rates further than most anticipate.

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