Summarised by Centrist
New Zealand’s central bank cut interest rates by 50 basis points, bringing the official cash rate to 4.75%. The bank said the move was necessary to maintain low inflation and stability. Following the announcement, the New Zealand dollar dropped 0.9%, while markets are now betting on another 50bps cut in November. “The RBNZ’s dovish stance suggests more rate cuts ahead,” noted Moody’s economist Shannon Nicoll.