Kai Tuo Macro: the Reserve Bank of New Zealand will continue to cut interest rates significantly

The data from Jinshi on October 9th, Abhijit Surya, an economist at Capital Economics, said that the Reserve Bank of New Zealand is likely to cut the official cash Intrerest Rate by 50 basis points again in the coming months, and the final rate cut may be larger than most people expect. He added that the Reserve Bank of New Zealand has greater confidence in achieving its inflation target, and with the risk of inflation outlook further tilting downwards, it is likely to cut Intrerest Rates by 50 basis points at the next two meetings respectively. By the end of 2025, the official cash Intrerest Rate may fall to 2.25%.