OCR decision: RBNZ takes ‘dovish’ tone, expected to cut rates further on tariff downturn

In a move viewed as dovish by economists, the Reserve Bank cut the Official Cash Rate by 25 basis points to 3.5%, with further cuts potentially needed to stimulate the economy. Kiwibank economists recommend a quick reduction to 2.5% by year-end due to global economic uncertainty, while the impact of increased tariffs on global inflation remains unclear under new interim Governor Christian Hawkesby’s leadership.

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