The Reserve Bank of New Zealand cut its benchmark rate by 50 basis points to 3.75%, see this link for the details comments and forecasts from the Bank:
The RBNZ is seeking to boost New Zealand’s economy struggling to emerge from a recession. The Bank signalled to markets bet that moderating inflation will bring borrowing
costs even lower over coming months.
The decision was in line with widespread expectations for the 50bp cut.
The RBNZ has now cut rates by 175 basis points since
August. Slowing in inflation has given policymakers the scope to extend their easing efforts.
Despite the 50bp cut meeting expectations the NZD/USD has dropped on the signals of further cuts to come.
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This article was written by Eamonn Sheridan at www.forexlive.com.
