The Reserve Bank has cut the official cash rate by 25 basis points to 3.25 percent, citing subdued inflation and spare economic capacity, though the decision revealed a rare split within the Monetary Policy Committee, with a 5-1 vote to proceed.
While the move was widely expected, the bank refrained from mentioning further cuts, diverging from past statements.
The cut comes as the economy remains soft under global uncertainties, including US tariff policies, with forecasts pointing to another potential cut by year-end.
Prime Minister Christopher Luxon and Finance Minister Nicola Willis credited the government’s fiscal restraint for taming inflation, contrasting their approach with the previous Labour government, while also warning that global instability underscores the need for ongoing responsible economic management.
“Subdued inflation and spare economic capacity”? Lying like Israel again.
It would be helpful if the NZ Department of Stats published the up to date true numder of people in NZ.
It is not a lie to delay the true numder of consumers in NZ but it is a manipulation not to reveal the true nature, the true numder of people in NZ by delaying the real figures.
We here in NZ are in very serious trouble. There simply is not enough people living in NZ to keep the country afloat economically. Word on the streets is there has been a loss of close to 400k citizens and NZ model needs 8 million if it was to be a viable sustainable economy.
The loss of people isn’t just people leaving , it is less people having family. That is to say, couples needs to nave at least 2 kids to replace themselves and 3 kids for growth. Laws such as unfair, matrimonial asset redistribution upon separation has forced particularly men to reevaluate economic security of assets and financial well-being. 3 years of cohabitation isn’t worth it. That could be fixed by parliament if they repealed unreasonable risk.
Not understanding or taking into account such government ideology is hindering growth has really been underestimated.
Are we close to collapse? I think so. An economy can only lean over so far before the weight is so great it cannot sustain viability. It has to crash.
Without correct and timly stats, the reserve bank is governing blind. That retail interest rate is still unsustainable.
Unregulated, local council spending has continued without sufficient intervention. Arguably no effort to stem ideology over basic core functions of running our cities infrastructure.
I was hopeful David Seymours ministry of regulation was going to achieve more, but it has made little impact. Perhapps a forward approach by contacting each industry to identify unhelpful regulatory requirements.
There is an election coming. But i have decided to leave this unworkable country to the thieves and gutless politicians who only seek wealth for themselves and forget they are employed to govern with proper effective laws and regulations sufficient to allow growth.