Wellington: The Reserve Bank of New Zealand announced Wednesday that its Monetary Policy Committee (MPC) agreed to cut the official cash rate by 25 basis points to 3.5%.
According to Qatar News Agency, the Bank noted that annual consumer price inflation remains close to the midpoint of the MPC’s target range of 1% to 3%. Business and core inflation expectations are consistent with inflation remaining at the target level over the medium term.
Economic activity in New Zealand has strengthened significantly, as expected, since the February Monetary Policy Statement. Higher-than-expected export prices and a weaker exchange rate have supported primary sector income and overall economic growth.
While monetary tightening has been accelerated, household spending and residential investment have remained subdued.