IGM analysts said that the market generally expects that the Reserve Bank of New Zealand will maintain its interest rate decision unchanged, and the tone will not change. Although recent inflation still exceeds the expectations of the Reserve Bank of New Zealand, core inflation is still declining, and the CPI annual rate is expected to reach the target range in the third quarter of this year. In addition, the higher-than-expected unemployment rate indicates a worsening labor market and a re-entry into recession, which should help suppress inflation. Nevertheless, the Reserve Bank of New Zealand may want to see further cooling of CPI before starting to cut interest rates. The Reserve Bank of New Zealand's current forecast suggests a 200 basis points cut in interest rates from the fourth quarter of 2024 to the fourth quarter of 2026.