NZD jumped after the RBNZ interest rate reduction decision

The New Zealand dollar jumped after the RBNZ cut its cash rate target:

• RBNZ cuts its cash rate by 25bp, as widely expected
• to 2.25% from 2.5%

This was the third consecutive cut and is widely expected to the be the final cut of the cycle. The RBNZ expected that ahead shows no further cuts:

• sees official cash rate at 2.25% in March 2026 (PVS 2.55%)
• sees official cash rate at 2.28% in December 2026 (PVS 2.62%)

I posted earlier this week on expectations this would be the last, a tailwind for the NZD:

• RBNZ rate cut expected this week, last one in the cycle? End of AUD/NZD bull run in sight