Market News
New Zealand cuts rates by 50 bps, flags further easing - REUTERS
By Lucy Craymer
- RBNZ cuts cash rate to 4.25%, meeting expectations
- Orr says rate track consistent with 50 bp cut in February
- NZ dollar and interest rate swaps move higher
WELLINGTON, Nov 27 (Reuters) - New Zealand's central bank cut rates for a third time in four months on Wednesday and flagged more substantial easing, including a likely half percentage point reduction in February, as inflation moderated to around the bank's target.
The Reserve Bank of New Zealand lowered the cash rate by half a percentage point to 4.25%, as expected by most economists in a Reuters poll.
RBNZ Governor Adrian Orr said there had been little discussion on cutting by anything other than 50 basis points, a reality check for some in the market who had expected more, but signalled the likelihood of further loosening next year.
