The Reserve Bank of New Zealand might reduce interest rates sooner than previously expected

The Reserve Bank of New Zealand might reduce interest rates sooner than previously expected as economic challenges intensify. Over the past year, predictions regarding the timing of the first Official Cash Rate (OCR) reduction have fluctuated. Initially, forecasts suggested a cut later this year. However, persistent domestic inflation sparked concerns that higher rates might need to be maintained for a longer period. At one point, another rate hike was even predicted.Now, there\'s growing consensus that the economy is struggling enough for the Reserve Bank to consider a rate cut this year, instead of the previously forecasted August 2025. ASB economists have recently adjusted their outlook, now anticipating a rate cut in November, instead of their previous forecast of February. They noted that household financial stress is increasing under high interest rates and easing, but still high, living costs. They stated, \"The cracks in households are starting to spread - inflation