The Reserve Bank of New Zealand reduced its Official Cash Rate by 50 basis points to 4.25% on 27 November 2024, marking the third consecutive cut in the current easing cycle. The Monetary Policy Committee reached the decision by consensus.
The decision, announced by the Monetary Policy Committee, continued the easing that the RBNZ began earlier in the year. The central bank signalled that it expected the OCR to decline further, guiding markets toward a rate of around 3.5% by the end of 2025.
INFLATION AND OCR PATH
Annual inflation in New Zealand had fallen to 2.2%, within the bank's 1–3% target band.
The RBNZ's indicative projection of about 3.5% by end-2025 implies a further cumulative reduction of roughly 75 basis points from the new rate.