New Zealand - Heading to a low of at least 1.5% in New Zealand

Not only did the Reserve Bank of New Zealand today cut interest rates by 0.25% to a new record low of 2.00%, but it also suggested that rates will soon be cut again to 1.75%. In order to weaken the dollar and boost underlying inflation, we expect the RBNZ will have to go at least one step further by reducing rates to 1.50%.

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