The Reserve Bank of New Zealand lowered its official cash rate by 25 basis points to 3.00%, the seventh reduction in a year and the lowest level since 2022. Governor Christian Hawkesby told lawmakers the move aims to revive an economy he described as having reached its cyclical low in the second quarter. The central bank expects easier monetary conditions to feed through gradually, projecting the average policy rate to fall to 2.71% in the December quarter of 2025 and 2.56% by mid-2026. Policymakers said spare capacity and easing domestic price pressures should pull headline inflation back to the 2% midpoint of their target band by mid-2026. Chief Economist Paul Conway forecast that house prices will stay flat for the next year, while Assistant Governor Silk warned that rising global tariffs are undermining trade and confidence. Hawkesby added that higher commodity prices and lower borrowing costs should eventually bolster growth, but acknowledged that earlier cuts have had a slower-than-expected impact. Elsewhere in the region, Bank Indonesia surprised markets with a second straight 25-basis-point cut, trimming its benchmark rate to 5.0% and marking the lowest level since 2022. Governor Perry Warjiyo said the decision, supported by contained inflation and a stable rupiah, is intended to accelerate economic momentum amid the same tariff headwinds confronting other export-oriented economies. The central bank also nudged up its growth forecast, signalling further willingness to support demand if external risks intensify.