The Reserve Bank of New Zealand reduces interest rates by 0.5 percentage points for the second consecutive time.

• On Wednesday, the RBNZ reduced its interest rate from 5.25% to 4.75%, marking its second consecutive rate cut since August.

The Reserve Bank of New Zealand reduced its benchmark interest rate by 50 basis points during its latest monetary policy meeting, following a consecutive decrease in the same rate.

The Reserve Bank of New Zealand lowered its interest rate from 5.25% to 4.75%, as anticipated by economists surveyed by Reuters.

In August, the RBNZ unexpectedly reduced interest rates by 25 basis points. The central bank stated that the speed of future rate cuts would depend on its confidence in maintaining a low inflation environment.

The central bank stated in its Wednesday announcement that it believes annual consumer price inflation is within its target range of 1 to 3 percent and is moving towards the 2 percent midpoint.

In the June quarter 2022, New Zealand's annual inflation rate reached 7.3%, its highest level in over three decades. Despite cooling to 3.3% in the June quarter 2024, it still exceeds the RBNZ's medium-term target range of between 1% and 3%.

The RBNZ observed that New Zealand's economic activity is "sluggish" because of tight monetary policy.

The Reserve Bank of New Zealand (RBNZ) stated that weak business investment and consumer spending, as well as softening employment conditions, are hindering productivity growth and limiting activity.

To maintain stability in output, employment, and the New Zealand dollar, it was necessary to cut rates.

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