The Bank of the Bank of New Zealand (RBNZ) reduced the official money (OCR) by 50 base points (BPS) from 4.25% to 3.75%, after the end of February the politics meeting on Wednesday.

The decision was in line with market expectations.

RBNZ has reduced the official cash rate by 125 BPS from August 2024.

More for the future …

In this section below it was published on Tuesday at 20:15 GMT as a preview of the interest rate on the Bank of the Bank of New Zealand Reserve (RBNZ).

• The Bank of New Zealand’s reserves is expected to reduce the key interest rate by 50 BPS to 3.75% on Wednesday.
• The updated RBNZ forecasts and the words of the Governor of the ORR will probably offer tips on the policy perspective.
• The New Zealand dollar is to turn off in advertisements regarding RBNZ principles.

It is expected that the Bank of New Zealand’s reserves (RBNZ) will reduce the official money (OCR) by another 50 base points (BPS) from 4.25% to 3.75%, when it announces the decision on the percentage rate on Wednesday at 01:00 GMT.

Most economists surveyed by Reuters predicted a reduction in interest rates by 50 BPS at a February politics meeting. The RBNZ has ensured a total of 125 BPS cuts since August last year. Therefore, the central bank’s tips on future rates can cause a enormous reaction in the dollar of New Zealand (NZD).

What can you expect from RBNZ percentage?

At the November meeting, the Governor of the RBNZ Adrian ORR clearly expected a 50 BPS reduction this month, noting that “if the economic conditions are evolving as expected, the committee expects the committee to be able to lower OCR at the beginning of next year.”

ORR added that “he was confident that domestic inflationary pressure would continue to relax.”

The decision was supported by fears to ponderous down the economic slowdown and the return of inflation to the target range of the central bank from 1% to 3%. The annual indicator of consumer prices in New Zealand (CPI) increased by 2.2% in the third quarter (Q3) from 2024, adapting to market forecasts and marking a keen slowdown from an enhance of 3.3% in the previous quarter.

Since then, the economy of New Zealand has entered a recession in the third quarter, and the gross domestic product (GDP) fell by 1% compared to the corrected 1.1% contraction from the previous quarter. Economists expected a decrease in 0.4% in the reported period.

Despite the facilitation of the transfer policy in November, RBNZ maintained that “economic activity in New Zealand is subdued”, leaving space for additional rates of rates this year.

“The Swaps market agrees and sees the principle of the rules of nearly 3.25% in the next 12 months,” according to BBH analysts. This derived the projection of the OCR Bank summit in December 2025 at 3.55%.

Against this background, the language of monetary policy statements (MPS) and updated economic forecasts will be the key to assessing the scope and schedule of future foot reduction.

How will the decision of the RBNZ percentage affect the dollar of New Zealand?

While leading to the showdown RBNZ, the Para NZD/USD is the highest in four weeks by 0.5750, helped reducing tensions related to the tariffs of the President of the United States (USA) Donald Trump and a wide American dollar (USD).

The dollar of New Zealand could be sharply reversing the monthly summit in relation to USD, if RBNZ fans further expectations. Another search of the OCR forecast can also break up a few NZD/USD.

In the event that RBNZ indicates a slowdown in the pace of facilitating or maintaining the OCR projection, the NZD has seen a fresh position on board.

Dhwani Mehta, a senior FXSTREET analyst, offers compact technical forecasts regarding the trade in the New Zealand dollar for RBNZ policy advertisements: “The risk of growth remains intact for NZD/USD after confirming the bull’s cross at Daily Chart. By adding credibility to the bear, the 14-day relative strength (RSI) indicator lasts much above level 50, despite the last slowdown. “

“If the buyers regain control, the initial resistance is visible at a 21-day straight movable medium (SMA) at 0.5814, above which on November 29, 2024, the exaltation of 0.5930 will be questioned. In addition, the 0.6000 round level will provide stiff resistance. And vice versa, strong support is visible near 0.5660, where 21-day SMA and 50-day SMA hangs. Lack of defense of convergence can cause a fresh defect in the low level of February 3 0.5516 “, adds Dhwani.