Judo Bank's Chief Economist Jarrod Kerr has highlighted critical insights from New Zealand's latest economic report, which reveal that the implemented restrictive monetary policies have yielded significant adverse effects, leading to a curtailment of inflationary pressures. Kerr noted that the Reserve Bank of New Zealand is indeed responding to these developments; however, he cautioned that the measures may be somewhat delayed.

Emphasizing the urgency of the situation, he stated that an interest rate cut in October is almost certain. Kerr advocates for a substantial reduction of 50 basis points initially, to be followed by an additional 50 basis point cut in November. In a bold assertion, he shared his view that the official cash rate may need to decrease by as much as 300 basis points to adequately address the current economic landscape..