Dire economy opens door for 50bps cut in official cash rate by Reserve Bank in October

Gross domestic product fell 0.9% in the June quarter. (Image: Getty)

Thu, 18 Sep 2025

A worse-than-expected economic contraction in the June quarter may open the door for a 50-basis-point rate cut in the official cash rate by the Reserve Bank of New Zealand next month.Earlier on Thursday, Stats NZ said the gross domestic product (GDP) fell 0.9% in the June quarter, following a 0.9% increase in the March quarter.The median market forecast was for a 0.3% contraction.The Reserve Bank of NZ (RBNZ) cut rates by 25 basis points to 3% in August, and its central forecast includes two more 25bps cuts to 2.5% by year-end. At the time, two...

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