The RBNZ Monetary Policy Committee voted 5-1 to cut the official cash rate (OCR) by 25 basis points to 2.25% at its meeting on Wednesday morning, November 26, as expected. This marks the third consecutive rate cut, following a 50 basis point reduction at the October meeting.

The bank’s statement indicated that annual consumer price inflation rose to 3% in the third quarter and is projected to decline to 2% by mid-2026. The significant reduction in interest rates since August 2024 is expected to support the economic recovery.

The statement also noted that future policy decisions will depend on the evolution of inflation expectations and the overall economic outlook over the medium term.