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RBNZ Cuts Cash Rate Amid Economic Weakness and Inflation Concerns

10/8/2025

36 4 Full Breakdown

Summary

Story summary

Reserve Bank of New Zealand (RBNZ) cut the Official Cash Rate by 50 bps to 2.5% on October 8, 2025, citing a weak economy.
GDP contracted 0.9% in Q2 2025.
NZD fell 1% against the USD.
RBNZ said cuts may be needed to stabilise inflation at 2.7%, with unemployment at 5.2%; analysts expect a 25bp cut next month.

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Story summary

Reserve Bank of New Zealand (RBNZ) cut the Official Cash Rate by 50 bps to 2.5% on October 8, 2025, citing a weak economy.
GDP contracted 0.9% in Q2 2025.
NZD fell 1% against the USD.
RBNZ said cuts may be needed to stabilise inflation at 2.7%, with unemployment at 5.2%; analysts expect a 25bp cut next month.