NZ Official Cash Rate

New Zealand’s central bank on Wednesday slashed benchmark rates by 50 basis points to 3.75%, marking its fourth straight cut, as easing inflation offers the central bank room to boost a sputtering economy. The move was in line with expectations from economists polled by Reuters, and marks the lowest the policy rate since November 2022. In its monetary policy statement, the Reserve Bank of New Zealand said inflation remained near the mid-point of its target band of 1%-3%, prompting it to lower rates. New Zealand reported headline ...

The US threat of aluminum and steel tariffs and reciprocal tariffs initially shook the markets, but the implementation at some future date gives the impression that the threats are negotiating ploys helped take away the sting. In his first term, Trump converted some of the tariffs to quotas, and that one scenario for the likely outcome now. Still there is great uncertainty of the US intent and strategy. For its part, the greenback finished last week lower against all the G10 currencies but the Japanese yen. It is not coincidental ...

Policymakers at the Reserve Bank of New Zealand have slashed half a percentage point from the official cash rate and claimed victory in achieving its inflation mandate. The seven person Monetary Policy Committee chose to cut the benchmark interest rate from 5.25% to 4.75% after meeting on Wednesday. In a statement, they said annual inflation was now within the target range and was "converging on the 2% midpoint". "The New Zealand economy is now in a position of excess capacity, encouraging price- and wage-setting to adjust to a ...

A snippet from UBS on Pacific Rim central banks: Fed’s easing cycle is just getting started, UBS see another 50 bp of cuts this year and 100 in 2025. Bank of Japan to raise short term rates by 25 basis points by the middle of 2025. See the most aggressive easing moves from the Reserve Bank of New Zealand, 200 basis points of cuts by September 2025. Reserve Bank of Australia is likely to wait until Q1/Q2 before starting its easing cycle, expect 75 basis points of easing by September 2025. AUD is UBS' 'most preferred', it'll benefit ...

There are clear signs of a continued weakening in economic activity as households and businesses hunker down in response to the interest rate increases to date. Households have reduced their discretionary spending in the face of higher mortgage repayments and more uncertain employment prospects. Weaker demand, in turn, has made businesses more cautious about spending and investment. The impact of higher interest rates and public sector cutbacks has become more evident in recent months. Weaker demand has increasingly become a key ...