RBNZ lowers OCR 50bps to 2.5%

By Sophia Rodrigues

Published On 08 Oct 2025 , 12:15 PM

The RBNZ cut the Official Cash Rate by 50bps to 2.5% citing prolonged spare capacity and the associated downside risk to medium-term activity and inflation.

The decision was a consensus one, after the committee members debated both 25bps and 50bps cut options.

The RBNZ said it is open to further reductions as required to ensure inflation settles sustainably at the 2% target midpoint in the medium term.

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