RBNZ rate cut wasn't unanimous for first time in 2 years

Reserve Bank governor Christian Hawkesby. (Image: NZME)

Wed, 28 May 2025

The Reserve Bank of New Zealand did cut the official cash rate and did lower the track, but not everyone on the Monetary Policy Committee thought that was the best move.It cut the official cash rate (OCR) by 25 basis points to 3.25%, and its forward-looking track shows 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.Not unanimous It did, however, discuss keeping the cash r...

Subscribe to BusinessDesk

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

You can cancel anytime with two clicks, an email or a phone call.
Find out more.

We are serious about journalism.

Already a Subscriber ? Sign in here.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].name) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

On the Money

On the Money: Brad Olsen, Therese Walsh & more

A global dig at the City Rail Link, Therese Walsh's favourite, and some Welly gossip.

Dileepa Fonseka 5:00am

World

Trump may end up sorry he tried to control the Fed

Presidents struggled with monetary policy even before the Fed’s formal independence.

The Wall Street Journal 5:00am

Trump may end up sorry he tried to control the Fed

Technology Opinion

Big Tech ‘acquihiring’ is an ugly but useful trend

Sometimes actions lead to unintended consequences.

Bloomberg 5:00am

Big Tech ‘acquihiring’ is an ugly but useful trend

Sponsored

Global real estate without the passport or paperwork

A global ETF offers access to income-generating real estate like data centres, healthcare and logistics warehouses – all in New Zealand dollars.

Blackrock, Smart Invest

Sponsored

‘Make Today the Day’: Why on-the-job training is the key to NZ’s service recovery

Covid gutted New Zealand’s service workforce. Training is the fix – and the future.

ServiceIQ

More Economy

Economy

Food prices rise 4.6% in the year to June

New stats show food prices rose 4.6% in the year to June – the largest rate of increase since late 2023.That was up from a 4.4% increase in the year to May, Stats New Zealand’s latest selected price indexes show.Rising prices for fruit and vegetables in June have contributed to a...

Staff reporters 17 Jul 2025