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Slowing economy prompts another interest rate cut from RBNZ nownowShare
Today's 25 basis point cut, which takes the OCR to 2.75 percent, isn't likely to be last this year either. In its Statement today the Reserve Bank stressed a reduction is warranted by the "softening economy" and "some further easing in the OCR seems likely". Driving the cut is growing concern about the international economic outlook, particularly China, the impact of falling dairy prices in New Zealand, a tappering off of building activity in Canterbury, declining business confidence, and very weak inflation. Economic growth is now forecast to slow to an annual pace of 2 percent, down from over 3 percent a year ... (full story)