New Zealand’s Reserve Bank could be on the cusp of becoming the most aggressive rate-cutting central bank if it slashes the cash rate by a massive 0.75 percentage points next week in response to a deteriorating economy.

Financial markets imply a one-in-five chance of a super-sized cut to 4 per cent on November 27, the last policy meeting of 2024. They are fully priced for a half-a-point reduction which would bring it under the Australian rate for the first time since 2013, outside the pandemic in March 2020.