The New Zealand dollar traded around $0.564, near its lowest level since early April, as a subdued inflation outlook added to expectations of further monetary easing. Business inflation expectations showed two-year projections, the key policy horizon, unchanged at 2.28%, while one-year expectations edged up slightly to 2.39%, within the RBNZ’s 1%–3% target range, suggesting price pressures are expected to remain contained in the near term. With job losses mounting and the economy nearing a second recession, most respondents expect the central bank to cut rates at its meeting later this month. Markets largely anticipate a 25-basis-point reduction to 2.25%, with a small 10% chance of a deeper 50-basis-point cut, keeping the New Zealand dollar under pressure and close to erasing all its gains against the US dollar this year.