Market News
NZ central bank cuts rates 50bps, flags steeper easing cycle to revive frail economy - REUTERS
By Lucy Craymer
Summary
- RBNZ's cut reinforces dovish stance, contrasting with cautious RBA, Fed
- Governor flags 25-bps cuts in April, May amid moderating inflation
- Economy struggles with recession, inflation volatility anticipated
- RBNZ says global tariff uncertainty poses economic risks
WELLINGTON, Feb 19 (Reuters) - New Zealand's central bank cut its benchmark rate by 50 basis points to 3.75% on Wednesday and flagged further reductions in borrowing costs amid moderating inflation as policymakers sought to revive a struggling economy.
The Reserve Bank of New Zealand Governor Adrian Orr said the board is forecasting a lower terminal rate than in its November projections, and expects two more 25-basis point rate cuts in April and May subject to economic conditions evolving as expected.
