MNI BRIEF: RBNZ Cuts OCR 25bp To 3.5%

The Reserve Bank of New Zealand monetary policy committee reduced the official cash rate 25 basis points to 3.5% on Wednesday, noting increased global trade barriers had weakened the outlook for global economic activity. 

“Having consumer price inflation close to the middle of its target band puts the committee in the best position to respond to developments,” the MPC said in a statement. “As the extent and effect of tariff policies become clearer, the committee has scope to lower the OCR further as appropriate. Future policy decisions will be determined by the outlook for inflationary pressure over the medium term.” The committee noted the impact of past rate cuts have not yet had their full impact on the economy.

The MPC’s decision was largely anticipated. (See MNI RBNZ WATCH: MPC Set To Cut 25 Basis Points To 3.5%)