RBNZ cuts interest rates by 25 basis points, as expected.
The Reserve Bank of New Zealand cut interest rates on Wednesday by 25 basis points to 2.25%, as widely expected, but signalled the easing cycle was coming to an end.
Source: Sharecast
The Committee voted 5 to 1 in favour of the cut.
The Bank said in a statement: "The case for a further reduction in the OCR emphasised significant excess capacity in the economy
"This provides confidence that medium-term inflation will return to, and remain around, the target midpoint. The economic recovery is at an early stage, and the inflation outlook provides scope to place more emphasis on avoiding unnecessary volatility in output and employment.
"With this context, retention of the easing in overall monetary conditions delivered to date would support an enduring recovery in economic activity."
Compare our accounts
If you're looking to grow your money over the longer term (5+ years), we have a range of investment choices to help.
Halifax is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.
