The Reserve Bank of New Zealand (RBNZ) announced its interest rate decision on Wednesday morning following its October 8 meeting, cutting the official cash rate by 50 basis points to a range of 2.50% the lowest level since July 2022. The move exceeded market expectations, which had projected a 25-basis-point cut, marking the eighth rate reduction since the central bank began its monetary-easing cycle in August 2024.

The RBNZ stated that its Monetary Policy Committee remains open to further reductions in the official cash rate as needed to ensure inflation stabilizes sustainably near the 2% midpoint of the target range over the medium term.

This statement is considered bearish for the New Zealand dollar.