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A Reuters poll shows 13 of 17 economists expect the Reserve Bank of New Zealand to cut the cash rate to 2.5% in Q4.
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This compares with 3.0% in the August poll.
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August 20 cut was expected, but RBNZ surprised by signaling a lower rate path; two members pushed for a 50 bps cut.
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Since Aug 2024, rates have been cut 250 bps to support a weak economy; inflation still within 1–3% target.
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Poll: 13 of 17 economists see another 50 bps easing this year; most expect a 25 bps cut on Oct 8.
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All major banks forecast 50 bps more cuts by year-end; median forecast keeps rates at 2.50% through 2026.
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Economists: RBNZ finally moving to provide more stimulatory policy for a struggling economy.
This article was written by Arno V Venter at investinglive.com.