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By Echha Jain

Oct 9 (Reuters) -New Zealand shares ended sharply higher on Wednesday after the central bank cut interest rates, as expected, and hinted at further easing, while the Australian benchmark index ended marginally higher.

New Zealand's benchmark S&P/NZX 50 index .NZ50 ended the session 1.8% higher at 12,776.13, its highest closing level since Sept. 13.

The Reserve Bank of New Zealand (RBNZ) slashed the cash rate by 50 basis points to 4.75% -- in line with market pricing and most economists' expectations -- and said it assessed annual consumer price inflation was within its 1% to 3% target range.

"While we expect the RBNZ to slow the pace of cuts as it approaches its estimate of neutral, we see risks skewed to the RBNZ continuing to cut by 50 bps per meeting in early 2025 if the labour market deteriorates more than expected," Goldman Sachs said in a note.

In Australia, the S&P/ASX 200 index .AXJO pared early gains to end 0.1% higher at 8,187.4 points, as the advances in banking and technology stocks were offset by losses in commodities.

Rate-sensitive financials .AXFJ jumped 0.6%, climbing for a third straight session. The "big four" banks added between 0.4% and 0.5%.

Minutes from the Reserve Bank of Australia's latest meeting, released on Tuesday, outlined conditions for a future rate cut, as well as for a hike.

"The RBA minutes yesterday slightly unwound the sell-off following U.S. payrolls, emphasising that financial conditions were largely unchanged following the prior meeting and thus did not warrant a shift in their policy stance, not 'ruling anything in or out'", Westpac said in a note.

Technology stocks .AXIJ gained 1.4%, tracking their Wall Street peers higher. .N

The gains in banking and tech stocks were capped by losses in commodity-linked sub-indexes.

Miners .AXMM fell 1.5% to their lowest closing level since Sept. 25 as metal prices dived in the absence of further stimulus measures in China. IRONORE/ MET/L

Heavyweights BHP Group BHP.AX, Fortescue FMG.AX and Rio Tinto RIO.AX skid between 1.2% and 2.3%.

Reporting by Echha Jain in Bengaluru; Editing by Savio D'Souza

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