RBNZ Expected to Cut Interest Rates Amidst Global Economic Uncertainty; NZD/JPY Faces Bearish Pressure
RBNZ Expected to Cut Interest Rates Amidst Global Economic Uncertainty; NZD/JPY Faces Bearish Pressure
The Reserve Bank of New Zealand (RBNZ) is widely expected to reduce its Official Cash Rate (OCR) by 25 basis points to 3.50% at its upcoming meeting on April 9, 2025.
This anticipated cut would mark the fifth consecutive reduction since August 2024, totaling a 175 basis point decrease aimed at stimulating economic recovery.
Recent U.S. policy actions, including the imposition of 10% tariffs by President Trump, have contributed to global market volatility and heightened recession concerns.
These developments are influencing central banks worldwide, including the RBNZ, as they navigate complex economic landscapes.
The NZD/JPY currency pair is experiencing intensified bearish momentum, with prices threatening to breach the 91.00 support level.
Technical indicators, such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), suggest increasing selling pressure, reinforcing the bearish outlook.
While the rate cut is largely priced in, market participants are keenly awaiting the RBNZ's assessment of the rapidly evolving global economic environment.
