New Zealand's central bank cut its benchmark rate by 50 basis points to 3.75% on Wednesday and policymakers flagged further reductions in borrowing costs amid moderating inflation as they sought to revive a struggling economy.

The government-appointed Reserve Bank of Australia board begrudgingly cut rates to try to ease the political crisis produced by the widespread working-class hostility that has developed to the Labor government.

New Zealand’s central bank has reduced its benchmark interest rate for the fourth consecutive time, lowering it by 50 basis points to 3.75% on Wednesday.