Reserve Bank of New Zealand meeting —

At its 8 October 2025 meeting, the Reserve Bank of New Zealand lowered its policy rate from 3.00% to 2.50%. The decision passed unanimous.

Decision

cut — 3.00% to 2.50%

Vote: unanimous

Key passages

Annual consumers price index inflation is currently around the top of the Monetary Policy Committee’s 1 to 3 percent target band. However, with spare capacity in the economy, inflation is expected to return to around the 2 percent target mid-point over the first half of 2026.

Inflation seen falling back to target, justifying rate cuts.

There are upside and downside risks to the inflation outlook in New Zealand. Cautious behaviour by households and businesses could slow the economic recovery, reducing medium-term inflation pressure. Alternatively, higher near-term inflation could prove to be more persistent.

Two-sided risks keep Committee flexible on future moves.

Meeting documents

Background reading

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