The Reserve Bank of New Zealand announced its interest rate decision on Wednesday morning at the conclusion of its August 20 meeting, cutting the benchmark rate by 25 basis points to a range of 3.00%, the lowest level since August 2022. The move was in line with market expectations and marked the seventh rate cut since the start of the monetary easing cycle in August 2024.

The RBNZ stated that further cuts are likely if medium-term inflationary pressures continue to ease in line with the banks forecasts.