The central bank lowered its benchmark interest rate by 50 basis points to 2.5%.
New Zealand’s central bank, the Reserve Bank of New Zealand (RBNZ), announced on 8 October 2025 that it has lowered its benchmark interest rate by 50 basis points to 2.5%
RBNZ cited concerns over the fragile state of the economy and signalled its willingness to implement further rate cuts if necessary to maintain inflation near its 2% target over the medium term.
Since August 2024, the RBNZ has reduced rates by a total of 300 basis points, leveraging the current inflation rate, which remains within the target range of 1% to 3%, to create room for additional monetary easing.
