All major banks in New Zealand are expecting the Reserve Bank of New Zealand to cut its cash rate by 25bp at its meeting on Wednesday, May 28, 2025.
- ANZ, ASB, BNZ, Kiwibank and
Westpac are all previewing a 25 basis point cut - to take the cash rate to 3.25% (currently 3.5%)
ANZ comment:
- “I am pretty confident about the 25 point cut because if I’m
wrong, everybody’s wrong… given they (RBNZ) have signalled
this and everyone’s expecting it and the market is pricing it.” - “There have been ups and downs in the data, but nothing that
would seriously challenge the expectation they will cut another
25, so it would be an enormous surprise if they were to pause or
cut 50.”
And, further out, ASB:
- “Three more cuts to 2.75% looks pretty certain, it is going
to be quite dependent on the Reserve Bank factoring in some
negative impacts on inflation from the tariffs over the medium
term.” - “So because we still have a lot of uncertainty about exactly
how New Zealand will be impacted by the tariffs, there will be
potential for the Reserve Bank to be cautious in the short term
as well.”
Direct quotes via Reuters.
2pm New Zealand time on Wednesday is
- 0200 GMT
- 2200 US Eastern time on Tuesday
—
Earlier:
- Reserve Bank of New Zealand Shadow Board recommends 25bp interest rate cut this week
- Reserve Bank of New Zealand expected to cut its cash rate on May 28, almost unanimous view
This article was written by Eamonn Sheridan at www.forexlive.com.
