The Reserve Bank of New Zealand (RBNZ) today cut interest rates by 50 basis points to 7.50 per cent – 25 basis points more than was expected – as the economy continues to falter.
While the Reserve Bank noted that New Zealand’s rate of inflation was expected to hit 5 per cent in the September quarter, weak economic growth would see it trend down thereafter.
“With medium-term inflation pressures expected to ease, it is appropriate to move towards a less restrictive monetary policy stance,” Alan Bollard, RBNZ governor said.
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
The RBNZ last cut interest rates by 25 basis points in July this year – the first reduction to the cash rate in five years.
Published: 11-09-08
Related Articles
NZ Reserve Bank cuts rates 24-07-08Today's other stories
- AFG expects to crack $2.3 billion for September
- Talkback
- Suncorp issues $444 million RMBS
- Bank overhaul announced as Lehman posts huge Q3 loss
- Strong employment figures throws doubt on October rate cut
- Challenger issues $400 million of RMBS
Tags:
