RBNZ cuts to 3.25%, now sees cash rate at 2.9% in December

RBNZ Governor Christian Hawkesby. (Image: NZME)

Wed, 28 May 2025

The Reserve Bank of New Zealand has cut the official cash rate by 25 basis points to 3.25% and now expects rates to go below 3.0% this year.The central bank’s forward-looking track now forecasts the cash rate reaching a low of 2.9% in December this year. In February, the Reserve Bank of NZ (RBNZ) had forecast rates would reach a low of 3.1% in December this year and remain there over the forecast period.Rates now remain at 2.9% until March 2027, when they move back to 3.0% and then to 3.1% in September 2027.'Significant spare cap...

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