FX.co ★ RBNZ Signals Data-Driven Path Ahead as Rate Cuts Near End

New Zealand's current interest rates fall within the neutral range of 2.5% to 3.5%, and any future adjustments will hinge on the economic trajectory, as the effects of previous rate cuts have yet to be fully realized, stated Reserve Bank Assistant Governor, Karen Silk. In an interview with Reuters, she highlighted persistent global trade uncertainties but projected an economic recovery bolstered by earlier monetary easing, which might mitigate some potential risks. The Reserve Bank of New Zealand (RBNZ) recently reduced rates by 25 basis points to 3.25% during its May meeting, suggesting that the easing phase might soon conclude after a cumulative 225 basis points cut since August. Silk emphasized that further reductions are not immediately necessary due to the lagged effects of policy measures and robust commodity exports. She asserted, "The trajectory for our cash rates will be contingent on data." Regarding the U.S. tariff decisions, Silk commented, "There is no certainty about the outcomes, yet the uncertainties are indeed elevated."