Wheeler's Communication Criticized After RBNZ Policy `U-Turn'

From bloomberg.com

New Zealand central bank Governor Graeme Wheeler faced criticism from economists Thursday after delivering an interest-rate cut that took most of them by surprise. Wheeler’s quarter-point reduction in the official cash rate to a record-low 2.25 percent came just five weeks after a speech in which he signaled no rush to ease further in response to weak inflation. Only two of 17 economists in a Bloomberg survey predicted today’s move, with the remainder forecasting no change. While the rate reduction was prudent given the risks of inflation remaining stubbornly low, “we also need to give the Reserve Bank of New ... (full story)