SYDNEY, Feb 28 (Reuters) - 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 lowered by around 8bp, and guidance was clearly less hawkish than in November," said Imre Speizer, a senior economist at Westpac.

"The NZD and swap rates fell sharply in response, and these reactions are likely to extend further during the day ahead given the significant surprise."

The market had priced in around a 23% chance of a hike this week. The probability of a move by May more than halved to just 20%, from 47% before the announcement.

Key two-year swap rates dived to 5.035%, from 5.195%, three-month bank bill futures erased early losses to surge up to 14 ticks.

The kiwi dollar was down almost 0.8% at $0.6122, breaking support around $0.6152. The next support is around $0.6112.

The Aussie dipped in sympathy to $0.6535, and nearer to support at $0.6525, having also taken a knock from a subdued reading on domestic inflation.

Data showed the consumer price index fell 0.3% in January, from the previous month, which kept the annual pace at a two-year low of 3.4%.

Analysts had looked for annual inflation to tick up to 3.6%, but falls in prices for holiday travel and clothing kept the index down.

Three-year bond futures reacted by recouping early losses and pricing in slightly more chance of future rate cuts from the Reserve Bank of Australia (RBA).

Futures now imply around a 40% probability of a first cut in the 4.35% cash rate in June, with a move in August put at 72%. (Reporting by Wayne Cole; Editing by Jacqueline Wong)