New Zealand ASB Bank: The Reserve Bank of New Zealand will continue to steadily cut interest rates and will take the next step in October

According to New Zealand's ASB Bank, the RBNZ's interest rate forecast implies a steady easing cycle, with a high probability of another rate cut at the remaining two meetings this year. Chief economist Nick Tuffley noted that the expected rate cuts are slightly slower than market expectations, but the 3% terminal rate in 2027 suggests a sustained easing cycle. "The path from here will be data-dependent, as always. The speed at which inflation falls relative to the RBNZ's current forecast will be very important." If inflation pressures fall faster than expected, the RBNZ may need to accelerate interest rates back to a neutral level of around 3.25%. (Jinshi)