HSBC economists: It is expected that the Reserve Bank of New Zealand will cut interest rates by 50BP next week

On November 22nd, according to the views of HSBC economist Paul Bloxham, due to New Zealand’s current cash Interest Rate still being far above the neutral level, he believes that the Reserve Bank of New Zealand may further ease monetary policy. He pointed out that the next meeting after next week will be held three months later. Therefore, Bloxham said that the Reserve Bank of New Zealand may consider cutting Interest Rate by 25 basis points, 50 basis points or 75 basis points on November 27th, but may ultimately choose a magnitude of 50 basis points. He said that this will balance the risks of rise and inflation. He added that as the economy continues to recover, the Reserve Bank of New Zealand’s speed of cutting Interest Rate may slow down by 2025, and the Interest Rate may fall to 3.25% by the end of 2025.