New Zealand Cuts Rate By 25 Bps

(RTTNews) - The Reserve Bank of New Zealand decided to cut its key interest rate by 25 basis points and signalled further easing on Wednesday.

The Monetary Policy Committee, governed by Christian Hawkesby, voted to lower the Official Cash Rate to 3 percent from 3.25 percent. The bank said the further data on the speed of New Zealand's economic recovery will influence the future path of the interest rate.

"If medium-term inflation pressures continue to ease as expected, there is scope to lower the OCR further," the bank said in a statement.

Headline inflation is forecast to return to around the 2 percent target midpoint by middle of 2026.