07:07 AM EDT, 05/29/2025 (MT Newswires) -- The Reserve Bank of New Zealand (RBNZ) cut its policy rate 25 bps to 3.25% on Wednesday, bringing cumulative

cuts to a "hefty" 100 bps just in 2025 and to 225 bps

since the rate-cutting cycle began last August, said Bank of Montreal (BMO).

This is mildly significant as it brings cumulative cuts by the RBNZ since the middle of last year, right in line with the Bank of Canada -- the two most "aggressive" cutters

among the mature economies, stated BMO.

Notably, the 50bps resulting spread between the RBNZ and the BoC overnight rate is exactly in line with the median over the past decade, noted the bank.

There's still a slight chance -- albeit increasingly faint --that the BoC could regain sole possession of the crown with a rate trim next week, pointed out BMO.

Markets are giving roughly a 25% chance of a cut in early June, but a more solid chance at the July meeting, added the bank. BMO expects a trim at one of those meetings, especially with Friday's gross domestic product data likely to presage a pullback for April.