A security guard stands in the main entrance to the Reserve Bank of New Zealand located in central Wellington, New Zealand, July 3, 2017.
David Gray | Reuters
New Zealand’s central bank has slashed its benchmark interest rate by 50 basis points after its monetary policy meeting, marking a second straight cut to its benchmark interest rate.
The cut brings its interest rate to 4.75% from 5.25%. The move was expected among economists polled by Reuters.
In August, the RBNZ unexpectedly cut rates by 25 basis points. The central bank said at the time that the pace of further easing will depend on how confident it is about a low inflation environment.
New Zealand’s annual inflation rate hit 7.3% in the June quarter 2022, its highest level in over three decades. While it has since cooled to 3.3% as of June quarter 2024, it remains over The Reserve Bank of New Zealand’s medium term target range of between 1% and 3%.
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