WEB NZ central bank chief flags two more cuts by Christmas, more in 2025
Central Bank Chief flags Two More Cuts By Christmas
The Reserve Bank of New Zealand (RBNZ) is likely to cut interest rates twice more before Christmas and again in 2025, according to Governor Adrian Orr.
In a speech in Wellington on Wednesday, Orr said the central bank was "prepared to do more" to support the economy, which is facing headwinds from the global economic slowdown.
Cuts To Continue Through 2025
Orr said he would prefer to continue making cuts through 2025, but that would depend on the economic data.
The RBNZ cut its benchmark interest rate by 50 basis points to 2% in August, and Orr said he would be "surprised" if the rate does not fall further.
Slowing Inflation
Orr said he is confident inflation will eventually fall back to the RBNZ's target of 2%, but that it will take longer than expected.
He said the central bank is "very focused" on bringing inflation down, but that it will not do so at the expense of economic growth.
Economic Outlook
Orr said the economic outlook is "uncertain" and that the global economy is facing a number of challenges.
However, he said the New Zealand economy is still growing, and that the RBNZ is "prepared to do what it takes" to support the economy.
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