{"id":106920,"date":"2024-10-09T13:06:15","date_gmt":"2024-10-09T09:06:15","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=106920"},"modified":"2024-10-09T13:06:18","modified_gmt":"2024-10-09T09:06:18","slug":"rbnz-cuts-rates-by-50-basis-points-amid-inflation-target-achievement","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/rbnz-cuts-rates-by-50-basis-points-amid-inflation-target-achievement\/10\/09\/market-updates\/","title":{"rendered":"RBNZ Cuts Rates by 50 Basis Points Amid Inflation Target Achievement"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>New Zealand&#8217;s central bank, the Reserve Bank of New Zealand (RBNZ), reduced its cash rate by <strong>50 basis points<\/strong> to <strong>4.75%<\/strong> on Wednesday, aligning with market expectations. This marks the second consecutive rate cut, following a <strong>25-basis-point<\/strong> reduction in August.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Market Reactions<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>The <strong>kiwi dollar<\/strong> dropped <strong>0.9%<\/strong> to <strong>$0.6084<\/strong>, reaching its lowest level since August 19.<\/li><li>Two-year swap rates fell <strong>7 basis points<\/strong> to <strong>3.605%<\/strong>, indicating market expectations for an additional <strong>45 basis points<\/strong> of easing at the upcoming November meeting.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Inflation Insights<\/strong><\/h3>\n\n\n\n<p>The RBNZ&#8217;s minutes indicated that annual inflation is now within its target range of <strong>1% to 3%<\/strong>, converging on the <strong>2%<\/strong> midpoint, with recent data showing <strong>3.3%<\/strong> inflation in the second quarter.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Economic Outlook<\/strong><\/h3>\n\n\n\n<p>Despite the rate cut, the RBNZ warned of a subdued economic outlook, citing:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Weak house price growth<\/li><li>Lower net immigration levels<\/li><li>Potential spillover effects from the Middle East conflict, which could impact global economic activity and energy prices.<\/li><\/ul>\n\n\n\n<p>Citi economists now anticipate a larger <strong>75 basis points<\/strong> cut in November, reflecting the perception that the current cash rate remains overly restrictive.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Global Context<\/strong><\/h3>\n\n\n\n<p>New Zealand&#8217;s easing aligns with global trends as many central banks move away from aggressive tightening. In contrast, Australia&#8217;s central bank maintains a more restrictive stance to address inflation concerns.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New Zealand&#8217;s central bank, the Reserve Bank of New Zealand (RBNZ), reduced its cash rate by 50 basis points to 4.75% on Wednesday, aligning with market expectations. This marks the second consecutive rate cut, following a 25-basis-point reduction in August. Market Reactions The kiwi dollar dropped 0.9% to $0.6084, reaching its lowest level since August &hellip;<\/p>\n","protected":false},"author":9,"featured_media":55381,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[7664,7173,7826,7345],"class_list":["post-106920","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-interest-rate-hike","tag-nzd-usd","tag-q3","tag-rbnz"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/106920","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=106920"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/106920\/revisions"}],"predecessor-version":[{"id":106921,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/106920\/revisions\/106921"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/55381"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=106920"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=106920"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=106920"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}