The Reserve Bank of New Zealand reduced its official cash rate (OCR) by 50 basis points to 4.25% during its November 2024 policy meeting, marking the third consecutive rate cut this year and in line with market expectations.
RBNZ delivers another 50 bps rate cut
New Zealand's annual inflation rate slowed to 2.2% in Q3 2024, the lowest since March 2021, down from 3.3% in the previous quarter. Economic activity remains subdued, with output still below potential and weak employment growth expected to persist through mid-2025.
More confidence on easing monetary policy
With inflation now near the midpoint of the Reserve Bank's 1% to 3% target range, coupled with weak GDP and labor market data, the committee is growing more confident in its ability to ease monetary policy further.
