Reserve Bank of NZ Defends Move to Keep Cash Rate High

New Zealand’s Reserve Bank says its following the trend of central banks worldwide, despite the US Federal Reserve’s recent 0.5 percentage point cut.

Reserve Bank Governor Adrian Orr speaks during a press conference at the Reserve Bank of New Zealand, in Wellington, New Zealand, on March 16, 2020. Hagen Hopkins/Getty Images

The Reserve Bank of New Zealand (RBNZ) has defended its decision to keep the official cash rate as high as 5.25 percent, easing just 25 basis points in August, despite several other countries making more significant cuts.

The U.S. Federal Reserve slashed interest rates by 50 basis points in September, bringing its cash rate to between 4.75 and 5 percent.