Reserve Bank of New Zealand monetary policy interest rate cut for May 2025, 25bp as expected.
Takes the cash rate to 3.25%, from 3.5%.
more to come
The Bank has cut its path ahead also: RBNZ sees official cash rate at 3.12% in September 2025 (PVS 3.23%)
- Sees official cash rate at 2.87% in June 2026 (PVS 3.1%)
- Sees Twi NZD at around 69.0% in June 2026 (PVS 67.5%)
- Sees annual CPI 1.9% by June 2026 (PVS 2.2%)
- Sees official cash rate at 3.1% in June 2028
- Sees official cash rate at 2.9% in September 2026 (PVS 3.1%)
Statement:
- inflation within target band
- core inflation is declining
- spare capacity in economy
- well placed to respond to domestic and international developments
- both tariffs and policy uncertainties overseas to moderate recovery
- conditions are consistent with inflation returning to the mid-point of the 1 to 3 percent target band over the medium term.
Minutes:
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Governor Hawkesby will follow up with his press confernence in an hour.
This article was written by Eamonn Sheridan at www.forexlive.com.
