Core Viewpoint - The Reserve Bank of New Zealand (RBNZ) has lowered the policy interest rate by 25 basis points to 3.25%, indicating potential for further rate cuts to support economic recovery impacted by U.S. tariffs [1][2] Group 1: Interest Rate Changes - The RBNZ's current interest rate is in a neutral range, with expectations to reach 3.12% by September 2025, down from a previous forecast of 3.23% [1] - By June 2026, the cash rate is projected to be 2.87%, revised from 3.1%, and is expected to remain at 3.1% by June 2028 [1] - The RBNZ suggests there is room for at least another 25 basis points cut in the official cash rate [1] Group 2: Economic Conditions - Economic recovery in New Zealand is under threat due to increased tariffs and uncertainty in overseas policies, which may slow down the recovery and reduce mid-term inflation pressures [2] - The RBNZ acknowledges that the full economic impact of rate cuts made since August of the previous year has yet to be realized [2] - Analysts indicate that while the RBNZ may consider further rate cuts, the timing may not align with market expectations [2] Group 3: Inflation Outlook - New Zealand's core inflation rate is declining and is expected to reach an annual CPI of 1.9% by June 2026, lower than the previous forecast of 2.2% [1] - The current situation suggests that inflation may return to the mid-point of the target range of 1% to 3% in the medium term [1]

Group 1 - The core viewpoint is that the forecast trajectory of the Official Cash Rate (OCR) reflects the decline in global inflation rates [1] Group 2 - The statement indicates that the New Zealand Reserve Bank is adjusting its monetary policy in response to international economic conditions [1] - The commentary suggests that the OCR adjustments are aimed at stabilizing the economy amid changing inflation dynamics [1] - The focus on global inflation trends highlights the interconnectedness of national monetary policies with international economic factors [1]