RBNZ Sees Lower Rates but Timing Hinges on Economy: Governor Hawkesby

New Zealand’s central bank governor, Christian Hawkesby, said Thursday the future path of the official cash rate (OCR) will depend on how quickly the economy recovers. “While our central projection for OCR is to fall to around 2.50% by the end of the year, that could occur faster or slower depending on how the economic recovery evolves,” he noted in a speech in Auckland. The RBNZ cut the OCR in August to a three-year low of 3.00% and signaled further reductions as domestic and global headwinds weigh on growth. Hawkesby acknowledged it has been a challenging six months for the central bank, marked by the surprise resignation of Governor Adrian Orr in March and the recent departure of chairman Neil Quigley. “Trust and confidence in our economic institutions is what underpins our financial system and supports economic prosperity,” Hawkesby said, stressing the RBNZ remains focused on price stability and financial resilience.