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.

New Zealand's central bank cut its benchmark rate by 50 basis points to 3.75% on Wednesday as policymakers sought to revive a struggling economy, and markets bet that moderating inflation will bring borrowing costs even lower over coming months.

Interest rates continue to tumble in New Zealand at pace, with the Reserve Bank cutting a further 50 basis points to leave the official cash rate (OCR) at 3.75 per cent.