New Zealand’s benchmark S&P/NZX 50 index closed 0.6% higher at 13,562 on Wednesday, trimming some of its early gains, after the Reserve Bank cut rates as expected but offered a more hawkish outlook. The index jumped as much as 2% to reach an all-time high earlier in the session. The RBNZ reduced its cash rate by 25bps to 2.25%, the lowest since June 2022, in an effort to support the country’s economic recovery. However, the central bank’s forward guidance indicated the cash rate would fall slightly to 2.2% in the second quarter of next year and would be 2.28% by the end of 2026. This prompted traders to sharply scale back bets on an additional cut to around 20%, compared to over 50% the previous day. Shares of medical device maker Fisher & Paykel climbed 4.6% after reporting first-half revenue exceeding NZ$1 billion for the first time. Health-tech peers also advanced, with Ebos Group up 0.7% and AFT Pharmaceuticals surging 10.3%.
