Reserve Bank of New Zealand Cuts Interest by Half a Percent

The Bank today lowered the Official Cash Rate (OCR) by 50 basis points in an attempt to boost a sluggish economy.

A National Bank of New Zealand MasterCard sits amongst New Zealand currency in Auckland on Oct. 8, 2003. Dean Treml/AFP via Getty Images

A significant fall in inflation and a “subdued” economy has convinced the Reserve Bank of New Zealand (RBNZ) to cut the official cash rate (OCR) by 50 basis points to 4.75 percent.

It says consumer price inflation is within its 1 to 3 percent target range, and converging on the 2 percent midpoint. When it announced a 25 basis point cut in August, it said inflation was at 3.3 percent.