New Zealand's central bank cuts interest rate again to lowest level since 2022
The Reserve Bank of New Zealand has cut the interest rate to 3.5% as expected, continuing its efforts to counter economic slowdown and maintain inflation within the target range.
On Wednesday, April 9, the Reserve Bank of New Zealand reduced its key interest rate by 25 basis points to 3.5% annually, following a meeting of the monetary policy committee, according to Interfax-Ukraine.
This decision was in line with analysts’ forecasts from Trading Economics and extended the monetary easing cycle that began in August of last year.
Since then, the rate has already been cut by a total of 200 basis points.
The last time this level was recorded was in October 2022. In February, the central bank took a more aggressive step by lowering the rate by 50 basis points at once.
The rate cut is attributed to slowing inflation: in the fourth quarter of last year, consumer prices rose by 2.2% year-on-year — the lowest level since March 2021. The RBNZ continues to target inflation within the 1–3% range.
Following the decision, the New Zealand dollar exchange rate against the US dollar rose by 0.4%, although it remains near its lowest point since spring 2009 — around $1 for 1.8 NZD.
It was previously reported that the US dollar is losing ground against the euro and yen, as fears grow over a potential US economic slowdown and earlier-than-expected Fed rate cuts. Investors are shifting away from risky assets toward more stable investments amid trade tensions linked to the Trump administration’s actions.