New Zealand: Kiwi Dollar Holds Losses Amid RBNZ Cautious Tightening Path.

The New Zealand dollar stabilized around $0.585 on Thursday but held most of the previous session’s losses amid a dovish tilt in the Reserve Bank of New Zealand’s policy projections. The central bank raised its official cash rate by 25 basis points to 2.75% on Wednesday, marking a second consecutive hike and bringing the rate to its highest level in more than a year. The move was widely expected as policymakers continued to address above-target inflation. Although the RBNZ indicated that further rate increases are likely, its forward guidance was interpreted as more cautious than markets had anticipated, triggering a sharp selloff in the kiwi. The RBNZ added that its gradual approach to tightening reduces the risk of needing larger rate increases later. Governor Anna Breman also stressed that there is no predetermined path for monetary policy and that the timing of any further rate hike remains highly uncertain.