New Zealand’s central bank announced a larger-than-expected 50 basis point rate cut on Wednesday, lowering the official rate (OCR) to 2.50% and signaling further easing could follow to support a sluggish economy.
The Reserve Bank of New Zealand (RBNZ) said its monetary policy committee had reached consensus to cut rates and remained open to further cuts “if necessary for inflation to stabilize sustainably near the target midpoint of 2%”. The move reflects growing concerns that weak demand and growing job insecurity are blocking recovery efforts.
The move surprised most economists (15 out of 26 in a Reuters poll predicted a smaller cut of 25 basis points) and provoked a strong reaction from the markets. The New Zealand dollar fell, as did two-year swaps.
The RBNZ’s move suggests policymakers now see inflationary pressures fading faster than expected and are prioritizing growth risks.
–
NZD/USD remains near the bottom of the session range, around 0.5744.
Tim BontempsOctober 9, 2025, 11:46 a.m. ETCloseTim Bontemps is a senior NBA writer for ESPN.com who covers the league and…
Former Secretary of Housing and Urban Development Dr. Ben Carson, recently named National Nutrition Advisor at the U.S. Department of…
Federal employees and annuitants are heading into another year of sharp increases in their health insurance premiums, both under the…
A federal judge on Thursday (Oct. 9) dismissed Drake's defamation lawsuit against Universal Music Group over Kendrick Lamar's "Not Like…
10/9: CBS Morning News - CBS News Watch CBS News Israel and Hamas agree to first phase of Gaza peace…
New York Attorney General Letitia James speaks during a news conference January 8, 2025 in New York. Michael M. Santiago/Getty…