NZ cuts rates for first time in over 4 years; flags more easing, kiwi tumbles

WELLINGTON: New Zealand's central bank slashed its benchmark cash rate for the first time since March 2020, sending the local dollar tumbling as policymakers flagged more cuts over the coming months saying inflation was converging on its 1% to 3% target.

The decision to reduce rates by 25 basis points to 5.25% came almost a year ahead of the Reserve Bank of New Zealand's (RBNZ) own projections, taking some market players by surprise and prompting bets of an aggressive easing path through to the end of 2025.