N. Zealand c. bank cuts interest rates to 4.75%

The Reserve Bank of New Zealand (RBNZ) announced a significant reduction in the official cash rate (OCR) to 4.75 per cent, as per its statement on Wednesday.

This decision comes as the central bank assesses that annual consumer price inflation is within its target range of 1 to 3 per cent and is converging towards the two per cent midpoint.

The RBNZ acknowledged that economic activity in New Zealand has been subdued, partially due to the impact of restrictive monetary policies.

Business investment and consumer spending have remained weak, and employment conditions have continued to soften. Low productivity growth has also contributed to the slowdown in economic activity.

Attribution: The Reserve Bank of New Zealand statement

Subediting: M. S. Salama