The Reserve Bank of New Zealand has cut interest rates for the sixth consecutive time to stimulate economic recovery

ChainCatcher news, according to Jinshi reports, the Reserve Bank of New Zealand has lowered the policy interest rate from 3.50% to 3.25%, marking the sixth consecutive rate cut, which aligns with the expectations of 23 out of 24 economists surveyed by institutions. This meets market expectations and indicates that there is room for further rate cuts to boost the economic recovery affected by U.S. tariffs. The Reserve Bank of New Zealand's new forecast suggests an additional 25 basis points cut, with the possibility of more cuts to come.

The Reserve Bank of New Zealand stated in a release: "The increase in tariffs and uncertainty in overseas policies is expected to slow New Zealand's economic recovery and reduce medium-term inflation pressures. The committee is fully capable of responding to domestic and international conditions to maintain medium-term price stability." The Reserve Bank of New Zealand indicated that the policy committee considered the benefits of keeping the cash rate unchanged today but favored a rate cut by a vote of 5 to 1. The sluggish economic recovery in New Zealand gives policymakers the space to maintain an accommodative stance and overlook expectations that inflation will rise this year.