The Reserve Bank of New Zealand (RBNZ) has reduced the official cash rate (OCR) by 25 basis points, marking the first cut in over four years.
This decision comes as inflationary pressures ease, with the central bank forecasting annual inflation to return to its 1-3% target range by the September quarter. The OCR is projected to drop to 4.9% by the end of the year, suggesting potential further cuts in the coming months. Following the announcement, the New Zealand dollar declined slightly, and major banks, including Kiwibank and ASB, promptly reduced their lending and deposit rates.
In a press release the RBNZ said the pace of future rate cuts will depend on maintaining a low inflation environment and anchored inflation expectations around 2%. Economists expect the RBNZ to continue with steady cuts, with the next likely in October.
The decision aligns with recent economic data showing slowing inflation, rising unemployment, and stalling economic growth, signaling a shift from the previous trend of rate hikes that began in 2021.
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It’s a year late and a billion too short. The drop needs to be significant and quicker.
The damage this reserve governor has done along with Grant Robber-son is truly severe.
Those dimwits are responsible for the massive shutdown of commerce, the building industry, retail and the general wellbeing of citizens. I say, together they were setting up the incoming centre right government to shut down the economy.
It is hard to believe the interest rates were kept far too low for far too long when house prices were out of control. Now people are trying to sell homes they purchase $200k to $300k less than they paid in 2021. These are hard-working citizens who went without and saved. They are selling because the interest rates are far too high. They have lost their deposit and now have to start again.
Businesses have closed because just so many do not have disposable cash to buy from them.
This clown of a reserve governor needs to have his pay-packet attached to the economy. He needs to skip meals, he needs to lose his roof over his head. If we paid him nothing, that would be far too much.
At what point will the minister of finance sack this twit for non-performance and put in a real, proper and qualified person in the job.
The supermarket Cartel didn’t get the “inflation is too high memo.” Agree to forcing key location sales of supermarkets to Aldi and you will see a food market with genuine competition.
Another out of control bunch of thieves is your local authority. Minister Brown needs to set limits on the council’s overspending on ideology crap and just focus on supplying the necessaries. I suggest all councils need to submit their budget to the Minister for approval.
Would you put school drop-outs and unqualified people in charge of a complexed business? Why do we allow it in Councils?
Councils supplied rubbish collection.
Did not charge for water.
Did not have a fee for sewer.
Had few or little water leaks because the pipes were maintained.
Employed staff to repair and maintain infrastructure rather than hire contractors that make huge profit on top of what they supply.
Couldn’t have put it better myself.
This country is in a real mess right now.
I am worried about corruption in government and in local bureaucrats. No one seems to be held accountable for stuff, good people are too scared to speak up. Useless people get promoted and paid too much. Conflicts of interests ip the wazoo…….😡
Couldn’t have put it better myself.
This country is in a real mess right now.
I am worried about corruption in government and in local bureaucrats. No one seems to be held accountable for stuff, good people are too scared to speak up. Useless people get promoted and paid too much. Conflicts of interests up the wazoo…….😡