New Zealand central bank says rate-cut impacts on domestic economy are as expected

[WELLINGTON] New Zealand‘s central bank said on Wednesday that its recent aggressive interest-rate cuts to stimulate a slowing economy at home have been playing out largely as expected.

“Transmission to financial markets is playing out largely as expected,” Reserve Bank of New Zealand (RBNZ) Financial Markets Director Adam Richardson said in a speech in Sydney.

“But as with any cycle, there are some unique features that we have had to take account of when assessing the stance of monetary policy.”

The RBNZ slashed its benchmark rate by 50 basis points this month. It has cut the rate by 300 basis points over the current easing cycle which began in August 2024 as policymakers worry about the frail state of the economy. REUTERS