New Zealand Dollar Hovers Near 7-Month Low

2025-11-11 02:49 By Kyrie Dichosa 1 min. read

The New Zealand dollar traded around $0.566, near its lowest level since early April, as a subdued inflation outlook added to expectations of further monetary easing.

Business inflation expectations for the next two years, the RBNZ’s key policy horizon, held steady at 2.28% in the fourth quarter, while one-year expectations edged up to 2.39%, both comfortably within the central bank’s 1%–3% target range, suggesting that price pressures are likely to remain contained in the near term.

The survey also indicated that most respondents expect the central bank to cut interest rates at its upcoming meeting later this month.

Markets are largely pricing in a 25bps reduction to 2.25%, with a 10% probability of a larger 50bps cut.

Mounting job losses and an economy teetering on the edge of a second recession have kept the kiwi under pressure, leaving it close to erasing all of its gains against the US dollar this year.



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