Market Analysis

New Zealand's central bank reduced the official cash rate by 50 basis points to 4.75% on Wednesday, noting that annual consumer price inflation is now within its target range of 1% to 3%.

The move aligned with market expectations, as a majority of economists predicted this outcome. In a Reuters poll, 17 out of 28 economists had anticipated the Reserve Bank of New Zealand (RBNZ) would lower the benchmark rate by half a percentage point.

"The Committee determined that a 50-basis-point reduction in the OCR is appropriate to achieve and sustain low and stable inflation, while also striving to minimize unnecessary volatility in output, employment, interest rates, and the exchange rate," the central bank stated in its policy announcement.

This marks the second consecutive meeting in which the RBNZ has lowered the official cash rate.

Paraphrasing text from "Reuters" all rights reserved by the original author.