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(Seoul=Yonhap Infomax) Min Jae Lee – The Reserve Bank of New Zealand (RBNZ) has lowered its benchmark interest rate.
On the 26th, the RBNZ announced its decision to cut the official cash rate by 25 basis points to 2.25% from 2.50%. The move was in line with market expectations, with five members voting in favor and one against.
In its monetary policy statement, the RBNZ noted, “Although the annual Consumer Price Index (CPI) rose to 3% in the third quarter, inflation is expected to decline to around 2% by mid-2026, considering the economy’s spare capacity.”
The central bank added, “While economic activity was sluggish through mid-2025, a recovery is underway. The rate cut is supporting household spending, and the labor market remains stable.”
This marks the RBNZ’s third consecutive rate cut.
Meanwhile, some analysts suggest this could be the final move in the current easing cycle.
The New Zealand dollar strengthened despite the rate cut, reflecting expectations that the easing cycle may be ending. The NZD/USD exchange rate surged nearly 1% following the announcement, trading at 0.5668 as of 10:23 AM KST, up 0.96% from the previous session.
mjlee@yna.co.kr
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