Interest rate cuts rolling in

The New Zealand economy has been bouncing in and out of recession for the past 18 months. Households and businesses are experiencing a significant slowdown, while at the same time, the government is tightening its purse strings. It’s clear that lower interest rates are needed to revive demand. With inflation finally easing, the Reserve Bank of New Zealand (RBNZ) cut the Official Cash Rate (OCR) from 5.50% to 5.25% in August. Interest rate markets are pricing the OCR to fall to 3% by the end of 2025.