The New Zealand dollar slid on Wednesday after the country's central bank held rates steady and trimmed its projected path for future policy, sparking a rally in bonds as markets sharply scaled back the risk of further hikes. The Reserve Bank of New Zealand (RBNZ) kept its official cash rate at 5.5% as most analysts had expected and reiterated policy would have to remain restrictive. However, the RBNZ also noted risks to the inflation outlook had become more balanced and lowered its forecast peak for rates to 5.60%, from 5.70%. "The surprise came from its OCR forecast track. The whole track out to Q1 2027 was ... (full story)