BOE Rate Decision Day: What to Expect
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
a few seconds ago
- Yahoo
NZ central bank cuts rates to 3-year low, flags more easing; kiwi $ tumbles
By Lucy Craymer WELLINGTON (Reuters) -New Zealand's central bank cut its policy rate by 25 basis points to a three-year low of 3.00% on Wednesday, and flagged further reductions in coming months as policymakers warned of domestic and global headwinds to growth. The New Zealand dollar fell as much as 0.8% to $0.5845, while two year swap rates slumped as deep as 2.96% -- their lowest level since early 2022 -- as the decidedly dovish stance caught markets off guard. Shop Top Mortgage Rates Your Path to Homeownership Personalized rates in minutes A quicker path to financial freedom The Reserve Bank of New Zealand said the economy had stalled in the second quarter, and that the committee debated holding rates as well as reducing them by 25 basis points or 50 basis points. The cut in the official cash rate by a quarter point was in line with a Reuters poll in which all but two of the 30 economists surveyed correctly forecast the RBNZ's decision, after the bank held policy steady in July. The central bank has slashed rates by 250 basis points since August 2024 to underpin a fragile recovery, taking advantage of expectations inflation will return to 2% next year and to buffer the economy from a broad shakeup in U.S. tariff policy. 'There are upside and downside risks to the economic outlook. Cautious behaviour by households and businesses could further dampen economic growth. Alternatively, the economic recovery could accelerate as the full effects of interest rate reductions flow through the economy,' the RBNZ said in its accompanying policy statement. The central bank forecast in its Monetary Policy Statement that the cash rate will be at 2.71% in the fourth quarter of 2025, below a forecast of 2.92% in May. In the first-quarter of 2026 it expects it to average 2.55%, lower than the previously forecast 2.85%. "If medium-term inflation pressures continue to ease as expected, there is scope to lower the OCR further," the statement added.A global front-runner in withdrawing pandemic-era stimulus, the RBNZ lifted rates 525 basis points between October 2021 and September 2023 to curb inflation in the most aggressive tightening since the official cash rate was introduced in 1999. The punishing borrowing costs, however, took a heavy toll on demand and tipped the economy into recession last year. While, the South Pacific nation has emerged from the slump, growth remains weak and is being further hampered by a slowdown in the global economy and the government's tight fiscal policy. Adding to the domestic economic stress, unemployment is also rising. New Zealand's annual inflation remains within the RBNZ's 1%-3% target band at 2.7% and the central bank is forecasting it will increase to 3.0% in the third quarter. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Yahoo
a few seconds ago
- Yahoo
New Zealand central bank cuts cash rate by 25bps to 3-year low
WELLINGTON (Reuters) -New Zealand's central bank cut its benchmark official cash rate by 25 basis points to a three-year low of 3.00% on Wednesday, as policymakers sought to revive a struggling economy and buffer it from external headwinds. The decision was in line with a Reuters poll in which all but two of the 30 economists surveyed forecast the Reserve Bank of New Zealand would cut the cash rate after holding policy steady in July. The central bank has slashed rates by 250 basis points since August 2024 to underpin a fragile recovery, with inflation within its target band of 1% to 3% giving policymakers leeway to lower borrowing costs. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
3 minutes ago
- Bloomberg
RBNZ Signals Further Rate Cuts to Revive Flagging Economy
New Zealand's central bank cut interest rates to a three-year low and signaled further easing, saying the economy has stalled. The local dollar fell. The Reserve Bank's Monetary Policy Committee lowered the Official Cash Rate by 25 basis points to 3% Wednesday in Wellington, as expected by 22 of 23 economists in a Bloomberg survey. The RBNZ's new forecasts indicate a reasonable chance of two more 25-point cuts, even as the bank raised its projections for inflation.
