The Reserve Bank of New Zealand has cut its benchmark interest rate
October 9, 2024
New Zealand Reserve Bank policymakers have cut the official cash rate by half a percentage point, a significant achievement in meeting inflation targets. At Wednesday’s meeting of the seven-member Monetary Policy Committee, it was decided to cut the base rate from 5.25% to 4.75%. According to the statement, annual inflation is now within the target range and “close to the 2% target”. The central bank also highlighted that the New Zealand economy currently has excess capacity, which is helping prices and wages adjust to the low inflation environment.