New Zealand Cuts Interest Rate By 25 Bps As Expected

RTTNews | 50 days ago
New Zealand Cuts Interest Rate By 25 Bps As Expected

(RTTNews) - The Reserve Bank of New Zealand reduced its benchmark rate by a quarter-point, as widely expected on Wednesday, as higher trade tariffs and increased policy uncertainties overseas are set to weigh on domestic economic outlook.

The Monetary Policy Committee, led by acting governor Christian Hawkesby, decided to cut the Official Cash Rate by 25 basis points to 3.25 percent. The decision was passed by a 5-1 vote.

This was the lowest borrowing costs since August 2022. The bank started its current easing cycle in August 2024.

"Inflation is within the target band, and the Committee is well placed to respond to domestic and international developments to maintain price stability over the medium term," the bank said.

Policymakers observed that there is significant spare capacity in the economy. Moreover, measures of core inflation and wage inflation continued to weaken.

In addition, outlook for domestic activity turned weaker because of international developments.

The economy is recovering after a period of contraction underpinned by higher commodity prices and lower interest rates.

Inflation is forecast to rise to 2.7 percent in the third quarter of 2025 and then return to near the 2 percent target midpoint from 2026, the bank said.

Further, the forecast suggest that the OCR could fall to 2.9 percent by December 2025.

read more
New Zealand Holds Key Rate As Expected

New Zealand Holds Key Rate As Expected

The Reserve Bank of New Zealand left its benchmark interest rate unchanged on Wednesday citing elevated level of uncertainty and near-term risks to inflation. The Monetary Policy Committee, governed by Christian Hawkesby, decided to hold the Official Cash Rate at 3.25 percent. The bank has paused the easing cycle for the first time since it started cutting rates in August 2024.
RTTNews | 8 days ago
New Zealand Building Permits Jump 10%In May

New Zealand Building Permits Jump 10%In May

The number of building permits issued in New Zealand was up a seasonally adjusted 10 percent on month in June, Statistics New Zealand said on Tuesday - coming in at 3,151.
RTTNews | 16 days ago
New Zealand GDP Expands 0.8% In Q1

New Zealand GDP Expands 0.8% In Q1

New Zealand's gross domestic product expanded by a seasonally adjusted 0.8 percent on quarter in the first quarter of 2025, Statistics New Zealand said on Thursday.
RTTNews | 28 days ago