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New Zealand Signals Further Easing After Third Rate Cut

  • N.Z. currency falls more than 2% as growth forecast slashed
  • Inflation forecast to remain below RBNZ target for fifth year
Updated on

New Zealand’s central bank lowered interest rates for the third time in three months and signaled another cut may be needed to boost inflation as growth slows. The currency slumped.

“At this stage, some further easing in the OCR seems likely,” Reserve Bank Governor Graeme Wheeler said Thursday in Wellington after cutting the official cash rate a quarter percentage point to 2.75 percent. “This will depend on the emerging flow of economic data.”