The New Zealand dollar edged down to $0.586 on Monday after falling 0.6% last week, as the Reserve Bank of New Zealand’s cautious approach to further monetary tightening weighed on the currency. The RBNZ raised its official cash rate for a second consecutive meeting last week, but signalled that future increases would be gradual amid increasing risks to the economic outlook. Governor Anna Breman said the bank wants time to assess how previous rate hikes feed through to the real economy, while Assistant Governor Karen Silk indicated that policymakers are more likely to wait until December before raising rates again. The cautious policy outlook has prompted investors to reassess the pace of future rate increases, with market pricing suggesting only around a 31% chance of an October hike, while a December increase is largely factored in.