Interest rates heading 50 points lower next month: economists

City council rate increases continue to push non-tradable inflation high. (Image: BusinessDesk)

Thu, 17 Oct 2024

New Zealand bank economists are unanimous in their expectation that the latest inflation figures will prompt the Reserve Bank of NZ to cut interest rates by another 50 basis points to 4.25% next month – a full percentage point cut in the space of two months.Inflation fell to 2.2% in the year to Sept 30, according to Stats NZ’s Consumers Price Index (CPI) release on Wednesday, slightly lower than Reserve Bank of NZ (RBNZ) forecasts and bringing the measure back into the central bank’s 1-3% target band.Bank of NZ head of researc...

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