New Zealand central bank cuts cash rate by 25 bps

[WELLINGTON] New Zealand’s central bank cut its benchmark official cash rate by 25 basis points to 3.25 per cent on Wednesday, as policymakers sought to revive a struggling economy and buffer it from the impact of global trade disruptions.

The decision was in line with a Reuters poll where all but one of the 30 economists surveyed forecast the Reserve Bank of New Zealand would cut the cash rate for the sixth successive meeting.

The central bank has slashed rates by 225 basis points since August, with lower inflation giving policymakers leeway to lower borrowing costs as the economy faces fresh global risks from US President Donald Trump’s international trade war. REUTERS