US Dollar Falls as Weak July Jobs Report Dents Fed Rate Hike Bets 
BOJ Signals Faster Rate Hikes as Inflation Risks Raise September Move Odds 
Asian Stocks Rise as Weak US Jobs Data Eases Fed Rate Hike Bets 
Philippine GDP Growth Slows to 2.3% in Q2 
China Exports Beat July Forecasts as AI Demand Fuels High-Tech Trade 
Eurozone Bond Yields Fall as Oil Slump Eases Inflation Fears Ahead of Central Bank Meetings 
Japan Services Producer Prices Rise 3.2% in June, Supporting BOJ Rate Hike Expectations 
RBI Holds Repo Rate at 5.25% as Inflation Risks and Global Uncertainty Persist 
China Holds Loan Prime Rates Steady for 14th Month as Economic Recovery Remains Uneven 
Japan Posts First Current Account Deficit in 17 Months as Dividend Payments Surge 
Asian Stocks Rise as Weak US Jobs Data Eases Fed Rate Hike Fears 
New Zealand’s central bank cut its official cash rate by 25 basis points to 3.25%, marking the sixth consecutive rate cut as global economic uncertainty and U.S. trade tensions weigh on domestic growth. The Reserve Bank of New Zealand (RBNZ) signaled a slightly deeper easing cycle than projected three months ago, forecasting the cash rate to reach 2.92% by Q4 2025 and 2.85% in Q1 2026.
The decision aligned with market expectations, as 29 out of 30 economists in a Reuters poll had anticipated the rate cut. Since August, the RBNZ has reduced rates by a total of 225 basis points, capitalizing on easing inflation, which stands at 2.5%—within the central bank’s 1%-3% target band. The RBNZ expects inflation to rise slightly to 2.7% in Q3.
However, the decision was not unanimous. One of the five committee members voted to keep the rate unchanged at 3.5%. The central bank emphasized that spare capacity in the economy and subdued inflation supported the rate cut.
New Zealand, an early mover in reversing pandemic-era monetary stimulus, had aggressively raised rates by 525 basis points from late 2021 to 2023 to combat inflation. But those high borrowing costs triggered a recession last year. While the economy has exited the downturn, growth remains sluggish, weighed down by weakening global demand and tight fiscal policy.
The RBNZ warned that U.S. tariff uncertainty could further slow international and domestic demand. Financial markets now anticipate at least one more rate cut this year, expecting the RBNZ to maintain a flexible stance in response to evolving economic conditions.
