Economics
Global Easing Gathers Pace as New Zealand Shocks With Bigger Cut
- Central bank reduces its cash rate by half-percentage point
- Orr doesn’t rule out more easing, says rates could go negative
This article is for subscribers only.
The dovish turn sweeping the global economy gathered pace Wednesday as New Zealand shocked markets with a half-percentage point interest-rate cut, sending its currency tumbling.
Reserve Bank Governor Adrian Orr and his policy committee slashed the official cash rate to a record low 1% as slowing economic growth prevents inflation from returning to the central bank’s goal. Orr signaled further easing could be possible and even hinted at non-conventional policy as the global outlook darkens amid a worsening economic conflict between the U.S. and China.