Traders are expecting rapid and big rate cuts in New Zealand after the central bank lowered the cash rate for the first time since 2020, and flagged more to come. That hit the kiwi dollar and sent bond yields into a tailspin.
The Reserve Bank of New Zealand lowered the cash rate by a quarter of a percentage point to 5.25 per cent, saying the economy was slowing faster than first thought. Back in May, it forecast the easing to start well into 2025.
