Central Banks
New Zealand Steps Up Pace of Rate Cuts as Economy Weakens
- RBNZ lowers cash rate by half a percentage point to 4.75%
- Says future reductions will depend on economic developments
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New Zealand’s central bank cut interest rates by half a percentage point, stepping up the pace of easing as policymakers become more concerned about the economic slowdown.
The Reserve Bank’s Monetary Policy Committee lowered the Official Cash Rate to 4.75% from 5.25% Wednesday in Wellington, as anticipated by 19 of 23 economists in a Bloomberg survey. The remainder expected a quarter-point move. It is the RBNZ’s second straight reduction after it began its easing cycle with a quarter-point cut in August.