New Zealand Central Bank Cuts Rate By 50 Bps

(RTTNews) - The Reserve Bank of New Zealand reduced its benchmark rate by 50 basis points on Wednesday and kept door open for further reductions.

The Monetary Policy Committee decided to cut the overnight cash rate to 2.50 percent from 3.00 percent. The rate was the lowest since July 2022.

"The Committee remains open to further reductions in the OCR as required for inflation to settle sustainably near the 2 percent target mid-point in the medium term," the bank said in a statement.

The committee expects headline inflation to return towards the target mid-point in the first half of 2026.

Policymakers observed that slow growth in disposable incomes and house prices continue to weigh on economic activity, although lower interest rates are supporting a recovery in consumption.