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3d ago

RBNZ Cuts OCR 25 Basis Points to 3% as Recovery Stalls, Signals Easier Path

The bank said further reductions would depend on continued easing in inflation.

View of an entrance to the Reserve Bank of New Zealand in Wellington, New Zealand November 10, 2022. REUTERS/Lucy Craymer/File Photo
A security guard stands in the main entrance to the Reserve Bank of New Zealand located in central Wellington, New Zealand, July 3, 2017. REUTERS/David Gray/ File Photo
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Overview

  • The Monetary Policy Committee voted 4–2 for a 25bp cut, with two members preferring a larger 50bp move.
  • The RBNZ lowered its projected OCR path, seeing 2.71% in December 2025 and 2.59% in September 2026.
  • Officials forecast headline inflation returning to the 2% midpoint by mid-2026, with CPI around 2.2% by September 2026.
  • The decision cited spare capacity, a stalled second‑quarter recovery, and cautious household and business behavior as key risks.
  • The New Zealand dollar weakened broadly after the announcement as markets digested the more dovish outlook.