RBNZ cut interest rate by 25 bp to 5.25%

August 15, 2024

RBNZ cut interest rate by 0.25% to 5.25% at today’s meeting signaling more cuts by the end of the year are possible if incoming data confirms inflation keeps sliding.
The move was unexpected by the market as the RBNZ projected before it would start monetary easing not earlier than next year.
In the comment to the decision it was noted that the economy is now suffering from elevated rates and this was interpreted by the market that RBNZ is seeking to step up the easing process in the attempt to boos the economy and avoid a recession.