New Zealand central bank cuts rate

29 July 2015

Last week the Reserve Bank of New Zealand cut its cash rate target by 25bps to 3.0%. The Bank said New Zealand’s growth outlook was soft, inflation was below its 1% to 3% target and dairy prices had “fallen sharply”. New Zealand was one of the few countries to put rates up in recent times and this move is a partial retraction of the increases in 2014.