RBNZ Assistant Governor Silk says the easing cycle is likely over and there are risks on either side, adds maintaining accommodative policy for a while aligns with economic conditions

• Maintaining the OCR where it supports closure of the output gap.
• Even with a minor hike, rates would reach just the lower bound of the neutral band.

The RBNZ's Assistant Governor indicates that the easing cycle is likely at its end, which suggests a shift toward a more hawkish stance than previously expected. Maintaining accommodative policy aligns with current economic conditions, but the commentary on potential risks suggests caution for future rate moves. Traders should watch for implications on the NZD and fixed income, as this could affect expectations around future monetary policy adjustments.