Reserve Bank of New Zealand Cut interest rates for the first time in 4 years and signal 3 additional cuts.

The Reserve Bank of New Zealand cut interest rates by 0.25% for the first time in four years and signaled three additional rate cuts, indicating inflation is close to target.

On August 14, 2567, Reuters reported that the Reserve Bank of New Zealand (RBNZ) cut its interest rate by 0.25% to 5.25%, the first monetary easing since March 2563, and signaled further rate cuts as inflation nears its 1% to 3% target.

The decision to cut interest rates by 0.25% was in line with market expectations. That is contrary to economists' predictions in a Reuters poll, which expected the RBNZ to keep interest rates unchanged. As practiced continuously Since May 2566

The RBNZ said the committee agreed to ease monetary policy by lowering the benchmark interest rate (OCR), and the timing of further cuts would depend on the committee's judgment that price movements are consistent with a low inflation environment. and adhering to the target of achieving inflation at 2%

The RBNZ has also signaled that there could be at least three interest rate cuts by the middle of next year. Having previously said it would not cut interest rates until then, the RBNZ forecasts interest rates will drop to 3% in the fourth quarter of 4.9 and 4% in the second quarter of 2567. 4.4

New Zealand inflation has fallen in recent months. And while it is at the level of 3.3% and expected to reach the RBNZ target by the middle of the third quarter of this year.

The RBNZ was one of the first central banks in the world to raise interest rates during the COVID-19 pandemic. The total interest rate has been increased by 5.25% since October. 2564 to control inflation. This is the most stringent monetary policy implementation. Since the introduction of the standard interest rate in 2542

Reference: reuters.com

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