WELLINGTON – New Zealand’s central bank slashed the cash rate by 50 basis points to 4.75% on Wednesday and said it assesses that annual consumer price inflation is within its 1% to 3% inflation target range.
The decision was in line with market pricing and most economists’ expectations, with 17 of 28 economists in a Reuters poll having forecast the Reserve Bank of New Zealand (RBNZ) to cut the benchmark rate by half a percentage point.
“The Committee agreed that it is appropriate to cut the OCR by 50 basis points to achieve and maintain low and stable inflation, while seeking to avoid unnecessary instability in output, employment, interest rates, and the exchange rate,” the central bank said in its policy statement.
This is the second consecutive meeting in which the central bank has cut the official cash rate.
(Reporting by Lucy Craymer; Editing by Shri Navaratnam)
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