New Zealand’s central bank cut its benchmark interest rate to a record low of 1.75 percent on Thursday, the third easing this year, but added this latest move was likely enough to get inflation back into its target range.

The local dollar briefly rose more than a third of a U.S. cent to $0.7342 as the market assumed the Reserve Bank of New Zealand (RBNZ) was now done cutting interest rates.

The bank projected rates at 1.7 percent next year, suggesting only a 20 percent chance of a cut.

“Clearly, the bank is in a bit of wait-and-see period now because they are pretty sure inflation is going to rise from here and then they have a pretty hard conviction on growth remaining strong,” said JP Morgan economist Ben Jarman.

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