New Zealand expectedly lowers benchmark rate by 50 basis points in its third straight cut

New Zealand's cardinal slope expectedly slashed its benchmark involvement complaint by 50 ground points connected Wednesday, marking a 3rd consecutive cut, arsenic it seeks to boost its struggling economy.

The Reserve Bank of New Zealand's involvement complaint present stands astatine 4.25%. Economists polled by Reuters had expected the slope to chopped its complaint by 50 bps.

In October, the RBNZ had besides chopped the currency complaint by 50 bps, pursuing a 25 bps chopped successful August. In its Wednesday statement, the cardinal slope said economical enactment successful New Zealand remains subdued and output continues to beryllium beneath its potential. 

GDP maturation successful New Zealand has been slowing, falling 0.2% successful the June 2024 quarter, compared with the March 2024 quarter, marking the 4th fourth of contraction. It besides fell 0.2% connected an yearly basis.

Lower ostentation has provided the state country to chopped rates and substance economical growth.

The RBNZ said that terms maturation pressures person eased with ostentation remaining adjacent the people midpoint of its medium word people range of 1% and 3%.

New Zealand's yearly inflation, which had changeable up to an implicit three-decade precocious of 7.3% successful the June 4th 2022, has cooled substantially. It stood astatine 2.2% successful the September 2024 quarter, according to figures released by Stats NZ successful October.