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RBNZ to Slash OCR Again as Weak Inflation Persists, Growth Slows
The sustained decline in dairy prices, strength in the New Zealand dollar, and a sharp deterioration in business and consumer sentiment, is likely to prompt the Reserve Bank of New Zealand (RBNZ) to cut interest rates on Thursday. It is set to be the second time since July that the central bank will rescind last year's rate hike cycle, which saw 100 basis points added to the Official Cash Rate (OCR). Back then the economy was expanding at an above-trend pace and dairy prices were expected to start rising again. However, over the last year and a half dairy prices have continued to fall sharply, the economy has slowed ... (full story)