The Reserve Bank of New Zealand decided to cut interest rates by 50 basis points from 4.75% to 4.25%.
Further interest rate cuts are expected early next year if economic conditions remain on track.
Then Orr, the governor of the Reserve Bank of New Zealand, spoke and said:-
- The forecast is consistent with a 50 basis point cut in February depending on the economy.
- Misunderstanding that the forecasts of the Reserve Bank of New Zealand show a slower pace of interest rate cuts.
- The forecast is consistent with a 50 basis point cut in February depending on the economy.
- We expect further price fluctuations due to geopolitics.
- He did not discuss the reduction of 75 basis points and then said that the discussion about 75 or 25 basis points is very minimal.
- The policy committee can meet at any time if necessary.
- The neutral interest rate is between 2.5 and 3.5%, and we expect to reach it by the end of 2025.
- I am confident that domestic inflation pressures will continue to subside.
- I am confident that economic growth will increase in 2025.
- We can exclude a rise in prices in the short term due to US tariffs.
- We have concerns about tariffs.
- Tariffs will put upward pressure on the global price level.
