The New Zealand dollar weakened to around $0.601 following the Reserve Bank’s decision to hold key interest rates and maintain an accommodative monetary policy stance for some time. The policy aims to support the economic recovery, which has been uneven across sectors and regions. Still, RBNZ forecasts indicate the possibility of a quarter-point rate hike later this year, updated from previous guidance pointing to mid-2027 as the likely timeframe for a potential increase. Policymakers noted that the recovery will gradually gain momentum and inflation move sustainably toward the target midpoint. However, officials remain cautious about the timing of any stimulus unwinding. Investors are currently pricing in at least one rate hike in Q4, while some economists anticipate tightening as early as September. Markets are now focused on Governor Anna Breman’s press conference later today for further monetary policy guidance.