FX.co ★ NZX 50 Pares Gain Amid RBNZ’s Hawkish Outlook

New Zealand's benchmark S&P/NZX 50 index concluded Wednesday with a 0.6% increase, settling at 13,562, after initially reaching an all-time high earlier in the trading session. This rise came on the heels of the Reserve Bank's anticipated decision to cut interest rates, paired with a more hawkish economic stance. The RBNZ reduced the official cash rate by 25 basis points to 2.25%, marking the lowest point since June 2022, aimed at bolstering the nation’s economic recovery. Despite the rate cut, the central bank's forward guidance signaled a slight decline in the cash rate to 2.2% by the second quarter of next year, with expectations of it reaching 2.28% by the close of 2026. This guidance led traders to significantly reduce the likelihood of another rate cut, from over 50% to about 20%. In the market, shares of Fisher & Paykel Healthcare surged by 4.6% following a report of record first-half revenues surpassing NZ$1 billion. other companies in the health technology sector also experienced gains, with Ebos Group rising 0.7% and AFT Pharmaceuticals jumping 10.3%.