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RBNZ opens door to possible rate cut
The Reserve Bank has kept its key interest rate on hold at 3.5 per cent, amid low inflation, as expected. But it is leaving open whether the next move in interest rates may be "either up or down" after saying it would hold interest rates at 3.5 per cent "for some time". Inflation was expected to be below the RBNZ's target band of 1 per cent to 3 per cent this year. The bank said annual inflation could even drop into negative figures because of plunging oil prices. Governor Graeme Wheeler also said that while the New Zealand dollar had fallen recently, the currency was still "unjustified and unsustainable" and due ... (full story)