RBNZ’s Hawkish Cut Spurs Kiwi on Bets Easing Cycle Near End

New Zealand’s central bank cut interest rates while projecting no further reductions next year, sending the currency higher on bets a 16-month easing cycle is all-but concluded.

The Reserve Bank’s Monetary Policy Committee lowered the Official Cash Rate by 25 basis points to 2.25% on Wednesday in Auckland, as expected by most economists in a Bloomberg survey. Policymakers voted 5-1 in favor of a cut, with the dissenter preferring no change.