FOREX TradingCharts.com

Financial News: New Zealand Central Bank Cuts Rate; Signals Steeper

New Zealand Central Bank Cuts Rate; Signals Steeper Easing

02/19/2025 - 03:25:00 (RTTNews)

(RTTNews) - The Reserve Bank of New Zealand cut its interest rate further by 50 basis points on Thursday and signaled more reductions this year to support economic growth.

The Monetary Policy Committee of the Reserve Bank of New Zealand, led by Governor Adrian Orr, decided to lower the Official Cash Rate to 3.75 percent from 4.25 percent.

The bank has lowered the rate by 175 basis points since last August.

"If economic conditions continue to evolve as projected, the Committee has scope to lower the OCR further through 2025," the bank said.

Orr said the bank is looking at lowering the OCR a little bit quicker than what was projected in November.

The new projections of the RBNZ showed the OCR at around 3.4 percent by June quarter and 3.1 percent in the December quarter of 2025.

Policymakers observed that inflation remained near the mid-point of the 1-3 percent target band.

In the near-term, inflation is likely to be volatile due to a lower exchange rate and higher petrol prices. However, the net effect of future changes in trade policy on inflation is currently unclear, policymakers noted.

Economic activity remained subdued. The bank expects growth to recover this year as lower interest rates support spending. Moreover, higher prices for some commodities and lower exchange rate lift export revenues, the committee observed.

Further, the committee said the labor market is expected to improve with a lag as economic growth picks up. The unemployment rate reached near its peak and is set to fall later this year, the committee added.

The bank expressed concerns about the uncertainty emanating from global trade tariffs.

Capital Economics economist Abhijit Surya said the bank will encounter further downside surprises in the incoming data. There remains a strong case for it to cut rates further than it is currently signaling, he added.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2025 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Moldova GDP Falls Further In Q4 (44 min(s), 24 sec(s) ago)
(RTTNews) - The Moldovan economy shrunk for a second straight quarter in the final three months of ...Full Story»

Croatia Prices Rise More Than Expected In February (01 hr(s), 04 min(s), 24 sec(s) ago)
(RTTNews) - Consumer prices in Croatia rose more than initially expected in February, but the rate ...Full Story»

U.S. Business Inventories Rise In Line With Estimates In January (01 hr(s), 48 min(s), 24 sec(s) ago)
(RTTNews) - Business inventories in the U.S. increased in line with economist estimates in the mon ...Full Story»

U.S. Homebuilder Confidence Slumps To Seven-Month Low In March (02 hr(s), 23 min(s), 24 sec(s) ago)
(RTTNews) - A report released by the National Association of Home Builders on Monday showed a cont ...Full Story»

New York Manufacturing Activity Drops Significantly In March (02 hr(s), 39 min(s), 24 sec(s) ago)
(RTTNews) - The Federal Reserve Bank of New York released a report on Monday showing regional manu ...Full Story»

U.S. Retail Sales Rebound In February But Much Less Than Expected (02 hr(s), 42 min(s), 24 sec(s) ago)
(RTTNews) - After reporting a notable decrease by U.S. retail sales in the previous month, the Com ...Full Story»

Bulgaria Inflation Rises To 4.0%, Highest In 14 Months (03 hr(s), 46 min(s), 24 sec(s) ago)
(RTTNews) - Bulgaria's consumer price inflation accelerated further in February to the highest ...Full Story»

New York Manufacturing Index Plunges Much More Than Expected In March (04 hr(s), 13 min(s), 24 sec(s) ago)
(RTTNews) - The Federal Reserve Bank of New York released a report on Monday showing regional manu ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Moldova GDP Falls Further In Q4

03/17/2025 - 12:11 PM (RTTNews)
(RTTNews) - The Moldovan economy shrunk for a second straight quarter in the final three months of ...Full Story>>

Croatia Prices Rise More Than Expected In February

03/17/2025 - 11:51 AM (RTTNews)
(RTTNews) - Consumer prices in Croatia rose more than initially expected in February, but the rate ...Full Story>>

U.S. Business Inventories Rise In Line With Estimates In January

03/17/2025 - 11:07 AM (RTTNews)
(RTTNews) - Business inventories in the U.S. increased in line with economist estimates in the mon ...Full Story>>

U.S. Homebuilder Confidence Slumps To Seven-Month Low In March

03/17/2025 - 10:32 AM (RTTNews)
(RTTNews) - A report released by the National Association of Home Builders on Monday showed a cont ...Full Story>>

New York Manufacturing Activity Drops Significantly In March

03/17/2025 - 10:16 AM (RTTNews)
(RTTNews) - The Federal Reserve Bank of New York released a report on Monday showing regional manu ...Full Story>>

Do not sell my personal information

Copyright © 2025. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.