The RBNZ’s pivot to easing is a rapid change of tune after it said in May it considered raising rates and wouldn’t cut them until the second half of 2025.
| New Zealand’s central bank has cut interest rates, embarking on an easing cycle much sooner than previously indicated as the economy slumps and inflation slows. The local dollar plunged.
By contrast, the Reserve Bank of Australia held borrowing costs steady last week and Governor Michele Bullock indicated itThe RBNZ’s new forecasts show the average OCR falling to 4.92 per cent in the fourth quarter and to 4.36 per cent by the middle of next year. The bank’s concerns over sticky domestic inflation are being alleviated as the economy teeters on the brink of its third recession in less than two years and unemployment rises.
“The committee noted that the weakening in domestic economic activity observed in the July Monetary Policy Review has become more pronounced and broad-based,” the RBNZ said.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
New Zealand food bank unknowingly distributes lollies made from potentially lethal amount of methamphetamineThe amount of methamphetamine in each lolly was up to 300 times the level someone would usually take and could be lethal.
Read more »
RBA interest rates: Why the Reserve Bank’s rates warning won’t mean much to investorsAndrew Hauser says it’s a risk to listen to “false prophets” on interest rates. But those in the market have little choice but to take a position as a crucial turning point looms.
Read more »
Interest rates may rise if inflation tests Reserve Bank’s strategyConsumer price figures this week are expected to show inflation has overshot the Reserve Bank’s forecasts for nine of the past 12 months.
Read more »
Pressure rises as ahead of Reserve Bank decision on interest ratesThere's a huge amount riding on tomorrow's inflation figures which will help the Reserve Bank decide its next move on interest rates.
Read more »
Experts tipping Reserve Bank will cut interest rates by ChristmasEconomists are predicting the cash rate to stay on hold when the RBA meets next week, but there is hope on the horizon for mortgage holders.
Read more »
Interest rates Australia: Reserve Bank must say no to the Recessionistas out thereThe Reserve Bank is taking its dual mandate seriously and seems to be ignoring the incessant clamouring for another rise in the cash rate.
Read more »