Pursuits
Wheeler's Communication Criticized After RBNZ Policy `U-Turn'
- Governor's Feb. 3 speech steered economists away from rate cut
- Only two of 17 economists in Bloomberg survey predicted easing
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New Zealand central bank Governor Graeme Wheeler faced criticism from economists Thursday after delivering an interest-rate cut that took most of them by surprise.
Wheeler’s quarter-point reduction in the official cash rate to a record-low 2.25 percent came just five weeks after a speech in which he signaled no rush to ease further in response to weak inflation. Only two of 17 economists in a Bloomberg survey predicted today’s move, with the remainder forecasting no change.