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[Reserve Bank Of New Zealand Governor Orr: Economic Recovery Supports Rate Cut Expectations, Limited Short-Term NZD Volatility]With Economic Activity Picking Up And a Mid-Term Path Toward Inflation Targets, Confidence In Further Rate Cuts Has Increased. However, Significant Slack Still Exists In The Economy, And Domestic Inflation Pressures Are Expected To Continue Easing, While Employment Growth Is Likely To Pick Up In The Second Half Of The Year As Economic Conditions Improve.The RBNZ Plans To Implement Two 25 Basis Point Cuts This Year, Aiming For a 50 Basis Point Reduction By Mid-Year, But Is Not In a Rush To Lower Rates To The 3% Level.GDP And Nominal GDP Growth Are Expected To Approach Potential Levels, With Limited Risk Of Significant Short-Term NZD Depreciation. Despite Concerns Over Recent Slower GDP Growth And External Risks, Such As US Tariff Policies, The Reserve Bank Of New Zealand Is Prepared To Handle Potential Shocks.
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