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Photo: RNZ RBNZ bows to pressure and makes big cash rate cut RBNZ says was a toss up between 25 and 50 basis point cut Economy weak and subdued because of high rates RBNZ gives little away on the next move, but another 50 bps expected in November Analysis - Over the decades the Reserve Bank has been keen to emphasise its independence and remind financial markets and the economic chattering classes that it's in control. But its latest decision to slash the OCR by 50 basis points to an 18-month low of 4.75 percent has all the hallmarks of bending with the prevailing wind, which had been gathering hurricane force in the past week. The short statement and summary of the meeting of the Monetary Policy Committee (MPC) said the double sized cut was justified by the subdued and weak econom...

File pic Photo: 123RF The Reserve Bank's decision to cut the official cash rate by 50 basis points, to 4.75 percent, will help the property market, but house prices may still only increase slowly from here. Chief economist at property data firm CoreLogic, Kelvin Davidson, said the key point for the housing market was the home loan interest rates were likely to continue to drop. "This could easily produce a short-term lift in confidence and a more active housing market as we hit the normal spring uplift anyway." But he said while house prices might stop falling in the near future, there were reasons why an upward surge was not likely. Housing affordability was still stretched and there were a lot of listings to choose from, he said. "But perhaps the most important restraint right now is ...

Photo: RNZ RBNZ cuts official cash rate by 50 basis points to 4.75% - lowest since February 2023 Slowing inflation and subdued economy justify bigger cut Economists and financial markets overwhelmingly backed 50 basis point cut RBNZ says the size and speed of future cuts will be determined by state of the economy Retail banks already cut some rates in anticipation The Reserve Bank has cut its benchmark cash rate by 50 basis points. The central bank cut the official cash rate (OCR) to 4.75 percent, as expected, to its lowest level in 18 months, saying the bigger than usual rate cut was justified by slowing inflation and the slack in the economy. "The Committee agreed that it is appropriate to cut the OCR by 50 basis points to achieve and maintain low and stable inflation, while se...