PHOTO: Reserve Bank Governor Adrian Orr. NEWSHUB
Reserve Bank of New Zealand Cuts Official Cash Rate to 4.25%
WELLINGTON — The Reserve Bank of New Zealand (RBNZ) announced today a 50-basis-point cut to the Official Cash Rate (OCR), reducing it from 4.75% to 4.25%. This decision, widely anticipated by economists and financial markets, reflects ongoing efforts to support economic stability amid evolving domestic and global conditions.
In its statement, the RBNZ emphasized its commitment to managing inflation and supporting sustainable economic growth. The cut follows a period of careful assessment, with new economic forecasts indicating the potential for further adjustments in 2025.
Market analysts had largely predicted this outcome, citing recent economic data and inflation trends. While some speculation existed about a smaller 25-basis-point adjustment or a more aggressive 75-basis-point cut, the consensus favored today’s outcome.
The RBNZ’s updated forecasts will be closely watched, particularly regarding the expected trajectory of the OCR in 2025. These insights will provide guidance for businesses, investors, and consumers navigating New Zealand’s economic landscape.
For more information and the full Monetary Policy Statement, visit the Reserve Bank of New Zealand website at RBNZ