Economics
New Zealand Joins Dovish Shift as Governor Puts Rate Cut in Play
- Slowing global growth and weaker spending cited for pivot
- Central bank holds benchmark rate at record low of 1.75%
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New Zealand’s central bank joined the global shift away from higher interest rates, saying its next move is more likely to be a cut and sending the kiwi dollar tumbling by the most in seven weeks.
“Given the weaker global economic outlook and reduced momentum in domestic spending, the more likely direction of our next OCR move is down,” Governor Adrian Orr said in a statement in Wellington Wednesday after leaving the official cash rate at 1.75 percent. “Core consumer price inflation remains below our 2 percent target mid-point, necessitating continued supportive monetary policy.”