The Monetary Policy Committee today voted to lower the OCR by 25 basis points to 3.25 percent. Annual consumers price index inflation increased to 2.5 percent in the first quarter of 2025. Inflation expectations across firms and households have also risen. However, core inflation is declining and there is spare productive capacity in the economy. These conditions are consistent with inflation returning to the mid-point of the 1 to 3 percent target band over the medium term. The New Zealand economy is recovering after a period of contraction. High commodity prices and lower interest rates are supporting overall ... (full story)