Reserve Bank of New Zealand Cuts Interest by Half a Percent

A significant fall in inflation and a “subdued” economy has convinced the Reserve Bank of New Zealand (RBNZ) to cut the official cash rate (OCR) by 50 basis points to 4.75 percent. It says consumer price inflation is within its 1 to 3 percent target range, and converging on the 2 percent midpoint. When it announced a 25 basis point cut in August, it said inflation was at 3.3 percent. This is the second consecutive meeting in which the RBNZ has cut the official cash rate. It announced a 25 basis point reduction in August after leaving it at 5.5 percent since May last year. It was last set at 4.75 percent in February of 2023....