New Zealand cuts interest rates

The Reserve Bank of New Zealand (RBNZ) has entered an easing cycle and slashed interest rates. The Reserve Bank of New Zealand (RBNZ) has entered an easing cycle much earlier than previously indicated, slashing interest rates amid slowing inflation. The reserve bank’s Monetary Policy Committee on Wednesday cut interest rates by a quarter of a percentage point to 5.25 percent. Nine of 23 economists in a Bloomberg survey expected the move, while 14 expected no change. The RBNZ’s new forecasts show the average interest rate falling to 4.92 percent in the fourth quarter and 4.36 percent by the middle of next year.