09.10.202502:57:35UTC+00New Zealand Dollar Rebounds After Rate-Cut Selloff

The New Zealand dollar edged closer to $0.58 on Thursday, rebounding from losses incurred in the prior session following a surprising move from the Reserve Bank. On Wednesday, the central bank implemented an unexpected rate cut, reducing the official cash rate by 50 basis points to 2.50%, marking its lowest point since July 2022. This decision was driven by concerns over the economy's vulnerability, and the bank indicated the potential for additional easing in the future. Market forecasts now largely anticipate a 25 basis point reduction at the RBNZ's upcoming meeting in November, with expectations for rates to decrease to 2% by 2026. Concurrently, in the United States, the minutes from the recent Federal Open Market Committee meeting showed that the majority of members favor further rate reductions this year, although many also voiced caution due to ongoing inflationary challenges.