FX.co ★ NZX 50 Hits 6-Month High After RBNZ Rate Cut

The S&P/NZX 50 index climbed 1.1% to reach 13,071 on Wednesday—its highest mark since February 19. This rise followed the Reserve Bank of New Zealand's anticipated decision to cut interest rates, maintaining a stance that suggests potential further easing. The central bank reduced its official cash rate by 25 basis points to a three-year low of 3%. This marks the seventh rate reduction in the ongoing easing cycle, as policymakers aim to rejuvenate a languishing economy and mitigate risks stemming from U.S. tariff measures. The RBNZ also adjusted its projected floor for the official cash rate downwards to 2.55% from the 2.85% initially forecast in May, leading markets to anticipate two more rate cuts in October and November. Several major New Zealand companies saw shares increase, with Fisher & Paykel rising 1.9%, Meridian Energy up 2.3%, Auckland International Airport advancing 2.4%, and Contact Energy gaining 2.3%. Despite reporting lower profits, Spark NZ and Fletcher Building experienced gains of 3.6% and 0.3%, respectively.