Hon Nicola Willis
Minister of Finance

The Reserve Bank’s positive economic outlook indicates the economy is growing and people can look forward to more jobs and opportunities, Finance Minister Nicola Willis says.

The Bank today reduced the Official Cash Rate by 50 basis points.

It said it expected further reductions this year and employment to pick up in the second half of the year.

“This is good news for New Zealanders. A growing economy means more money in people’s pockets, more jobs and more opportunities,” Nicola Willis says.

“The Government knows many families and businesses are doing it tough, but evidence is mounting that they can look forward to better times.

“Today’s reduction in the Official Cash Rate is the fourth since August last year and confirms inflation is firmly back under control.

The rate has now fallen 1.75 points since August to 3.75 per cent. Further reductions will put more downward pressure on interest rates.

“That is good news for businesses as well as families. More money in people’s pockets means more money flowing through tills.

“There are signs that that is already beginning to occur.

“Business and consumer confidence are both trending upwards and last week the BNZ and Business NZ reported that growth in manufacturing had risen to its highest level since September 2022.

“After a period of decades-high inflation, high interest rates and cost-of-living pressures, the economy is heading in the right direction.”

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