RBNZ expected to hold rates steady on July 9, with one more cut predicted later

The Reserve Bank of New Zealand is expected to keep interest rates unchanged on July 9, with a majority of economists forecasting just one more 25 basis point cut this year. The central bank has lowered rates by 225 basis points since August, supporting an economy that grew by 0.8% in the first quarter.

Inflation eased to 2.5% in the first quarter, within the RBNZ’s target range, but uncertainty around medium-term price pressures has increased. With second-quarter inflation data due on July 21, the central bank is likely to hold off on further easing for now.

Most economists expect the RBNZ to hold its official cash rate at 3.25% on July 9, with no change predicted by major New Zealand banks. Another 25 basis point cut is expected by end-September, with half of economists anticipating it at the August meeting.

The median forecast shows interest rates at 3.00% by the end of the year, with inflation expected to average 2.8% this quarter and stay within the RBNZ’s target range through at least the end of 2026. New Zealand’s economy is forecasted to grow 1.0% this year and 2.4% in 2026.

Read more at Yahoo Finance.: RBNZ to hold rates at 3.25% on July 9 but cut once more this year: Reuters poll