New Zealand central bank cuts cash rate by 25 bps to 2.25%

[AUCKLAND] New Zealand’s central bank cut its benchmark official cash rate by 25 basis points to 2.25 per cent on Wednesday, its lowest level since mid-2022, as policymakers extended their efforts to revive a struggling economy and mitigate global headwinds.

The decision matched a Reuters poll in which all but four of the 36 economists surveyed forecast the Reserve Bank of New Zealand would cut the cash rate by a quarter point.

The central bank, which surprised markets by slashing rates by a bigger-than-expected 50 basis points in October, has delivered 325 basis points worth of easing since August 2024 to shore up an economy that has contracted in three of the last five quarters. REUTERS