New Zealand cuts rate by 25 bps to 3-year low

[New Zealand Flag]

The Reserve Bank of New Zealand reduced its official cash rate by 25 basis points to 3% during its August 2025 meeting, lowering borrowing costs down to their lowest point since August 2022.

The decision was reached with a 4–2 majority, acknowledging both upside and downside risks to the economic outlook.

Following the decision, the kiwi dollar fell more than 1% to $0.582 on Wednesday, hitting its lowest level since mid-April.

NZ's inflation edged up to 2.7% in Q2 from 2.5% previously, and it is projected to reach 3% in Q3, driven by rising administered prices, food costs, and prices of other tradable goods and services. On the growth front, GDP contracted by 0.7% year-on-year in Q1.

ETFs linked to New Zealand: (NASDAQ:ENZL [https://seekingalpha.com/symbol/ENZL]), (OTCPK:SPKKY [https://seekingalpha.com/symbol/SPKKY]).

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