In an unexpected move, New Zealand's central bank has slashed its benchmark interest rate by 50 basis points, bringing it down to 2.50%. This decision came as a surprise to many analysts and has opened the door for possible further easing measures by policymakers concerned about the country's faltering economy.

The rate cut exceeded the expectations of 15 out of the 26 economists surveyed, who had anticipated a 25 basis points reduction. However, the larger cut was not entirely unforeseen, as the remaining 11 economists in the survey had predicted the 50 basis points reduction. The market was already geared for stronger monetary policy interventions from the Reserve Bank of New Zealand.

With inflation comfortably within the target range of 1% to 3%, the RBNZ has room to maneuver with int

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