New Zealand Dollar Tumbles After RBNZ’s Jumbo Cut

2025-10-08 02:09 By Judith Sib-at 1 min. read

The New Zealand dollar fell to $0.575 on Wednesday, hitting its lowest level since April, after the Reserve Bank delivered an aggressive rate cut and signaled more easing ahead.

The central bank slashed its official cash rate by 50bps to 2.50%, the lowest since July 2022, surprising markets that had been split between a 25- and 50-bp move.

The RBNZ said the larger cut was needed to restore confidence in an economic recovery that has lost momentum in recent months.

Since August 2024, the central bank has reduced rates by a total of 300bps, and with inflation remaining within its 1%–3% target range, policymakers still have room to ease policy further.

Markets are now almost fully pricing in a 25bps cut at the RBNZ's next meeting in November, with rates expected to decline to 2% by 2026.



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