The New Zealand dollar slipped to $0.579 but stayed close to a two-month high, amid expectations that the Reserve Bank of New Zealand’s easing cycle may be over. While the central bank cut its cash rate by 25bps last month, its updated projections suggested limited scope for further easing, implying only about a 20% probability of another cut next year as inflation pressures cool and the economic outlook improves. Meanwhile, RBNZ Governor Anna Breman on Wednesday emphasized a continued focus on data dependency and policy flexibility as economic conditions evolve. Currently, markets anticipate that the central bank’s next move will be a rate hike, though not until late 2026. The kiwi also received additional support from a weaker US dollar after the Federal Reserve lowered interest rates by 25bps and presented a less hawkish outlook than some had expected.
