Reserve Bank cuts OCR to 4.25% but signals cautious approach to future reductions

Summarised by Centrist

The Reserve Bank of New Zealand lowered the Official Cash Rate (OCR) to 4.25%, marking a 125 basis point drop since August. Despite the reduction, economists described the outlook as “hawkish,” with Kiwibank’s Jarrod Kerr noting, “More cuts are required, but the RBNZ seems overly cautious.” Inflation has fallen to 2.2%, aligning with the Bank’s target, but uncertainties around recovery and global risks persist.

Read more over at Interest.co.nz