Borrowing costs: People walk towards the entrance of the central bank in the New Zealand capital city of Wellington. The RBNZ lifted rates by 525 bps between October 2021 and September 2023 to curb inflation. — Reuters
WELLINGTON: New Zealand’s central bank has cut its policy rate by 25 basis points (bps) to a three-year low of 3%, and flags further reductions in the coming months as policymakers warn of domestic and global headwinds to growth.
The New Zealand dollar fell as much as 0.8% to US$0.59, while two-year swap rates slumped as deep as 2.96%, their lowest level since early 2022, as the decidedly dovish stance caught markets off guard.
