New Zealand cuts policy rate for first time in four years
RBNZ cites easing inflation and weakening economic activity
The Reserve Bank of New Zealand (RBNZ) cut its policy rate today (August 14) for the first time since March 2020, amid falling inflation and weakening economic activity.
The bank’s seven-member monetary policy committee (MPC) decided to cut the official cash rate by 25 basis points to 5.25%. It had previously raised the rate by a total of 525bp, from 0.25%, since October 2021.
In a statement, the RBNZ said the pace of further easing would depend on “the committee’s confidence that pricing
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