New Zealand Central Bank Cuts Interest Rates to 4.75% Amid Economic Struggles

The Reserve Bank of New Zealand's decision marks its second consecutive rate cut as the country grapples with subdued economic activity and a weakening job market.

• The Reserve Bank of New Zealand reduced its official cash rate by 50 basis points to 4.75%, aligning with market expectations.
• This marks the second consecutive rate cut as the central bank aims to maintain low and stable inflation within its 1% to 3% target range.
• The New Zealand economy has faced technical recessions and a softening employment landscape, prompting the need for monetary easing.
• Economists predict further rate cuts might be necessary as the country deals with low productivity growth and weak consumer spending.
• New Zealand's economic challenges have led to increased migration to Australia, where the job market currently appears stronger.

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Australian Broadcasting Corporation CNBC