New Zealand PM Agrees With Those Wanting Outsized RBNZ Cut

New Zealand Prime Minister Christopher Luxon has expressed support for a more significant interest rate cut by the Reserve Bank of New Zealand (RBNZ). The RBNZ recently raised the Official Cash Rate by 25 basis points, but Luxon believes a 50-basis-point cut would have been more appropriate. Luxon stated that he personally agrees with those who wanted a larger rate reduction, citing the need to address the country's high inflation and cost-of-living challenges. The Prime Minister's comments suggest a potential divergence between the government's economic priorities and the RBNZ's monetary policy decisions. The article highlights the ongoing debate surrounding the appropriate monetary policy response in New Zealand, with the Prime Minister advocating for a more aggressive approach to interest rate cuts. This stance may put him at odds with the central bank's assessment of the economic conditions and its mandate to maintain price stability.