The Official Cash Rate in New Zealand has been reduced by half a percentage point for the second time in a row, bringing it down from 4.75% to 4.25%. This decision is in line with the expectations of the majority of economists surveyed by Bloomberg.
The Reserve Bank of New Zealand (RBNZ) has indicated that future rate cuts will be implemented at a slower pace due to projected inflationary pressures. According to the RBNZ's updated forecasts, the average Official Cash Rate could reach 3.83% by the middle of next year, suggesting a shift towards more gradual reductions.
Following the announcement, there was a noticeable increase in the value of the New Zealand dollar.