New Zealand Reserve Bank Cuts Cash Rate to 3%, Governor Hawkesby Explains Move

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New Zealand’s Reserve Bank has reduced its official cash rate by 25 basis points to 3 percent, the lowest level in three years. The cut was widely expected as the central bank responds to weaker economic conditions and global uncertainty.
Governor Christian Hawkesby said the bank is closely monitoring domestic economic data and international trends to determine whether additional rate cuts will be necessary. He is scheduled to provide further details in a public address later today.
Since August last year, New Zealand’s benchmark rate has dropped significantly from 5.5 percent to the current 3 percent, reflecting a series of aggressive policy adjustments aimed at supporting growth.
The decision underscores the Reserve Bank’s commitment to stabilizing the economy while maintaining flexibility should further action be needed.

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