FX.co ★ New Zealand Dollar Rises After RBNZ Decision

The New Zealand dollar experienced a rise to approximately $0.596 on Wednesday, following an initial dip to $0.592 after the Reserve Bank of New Zealand (RBNZ) announced its interest rate decision. As anticipated by many, the RBNZ reduced its official cash rate by 25 basis points to 3.25%, marking the sixth consecutive reduction. This decision aligns with the ongoing strategy to maintain inflation within the desired range. The central bank hinted at the potential for further interest rate reductions to facilitate an economic recovery overshadowed by US-imposed tariffs. Current projections by the RBNZ suggest the cash rate may fall to 2.92% by the fourth quarter of 2025 and further decrease to 2.85% in the first quarter of 2026. On the international stage, the New Zealand dollar encountered downward pressure due to a strengthening US dollar, driven by positive economic data reflecting improved sentiment.