It is the latest major central bank to ease policy, following policymakers in Europe, Canada and Britain, and could perhaps be a signal for those that are still holding steady in the face of sticky inflation.
Yes, looking at you, Reserve Bank of Australia, which all but ruled out any rate cuts this year.
The RBNZ seems confident inflation in New Zealand, which ran at 3.3% last quarter, will be back in the target band of 1-3% this quarter, and it does not need to wait for the actual Q3 number to act.
In particular, it also projected a cash rate of 4.92% by December, meaning they see room to cut maybe two more times by Christmas. Markets agree, having already fully priced in another easing in October, with some chance of a 50-basis-point move.
The kiwi dollar duly slumped 1%, while key two-year swap rates fell 11 basis points to the lowest since mid-2022.