NZ Central Bank Cuts Cash Rate Amid US Tariffs

New Zealand's central bank cut its benchmark rate by 25 basis points to 3.5 percent on April 9, as policymakers sought to revive a struggling economy and counter risks from trade tariffs.

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WELLINGTON -

The decision is in line with a Reuters poll where all 31 economists surveyed forecast the Reserve Bank of New Zealand (RBNZ) would cut the cash rate for the fifth successive meeting.

The central bank has now cut rates by 200 basis points since August 2024, with slowing inflation giving policymakers leeway to lower borrowing costs as the economy faces headwinds from potentially slower global growth due to rising trade tensions.

The committee agreed that a 25 basis point reduction in the official cash rate (OCR) would be consistent with a mandate of maintaining low and stable inflation, the minutes of the meeting said.