RBNZ's Wheeler juggles strong kiwi, tepid inflation expectations in future rate cut equation

Wed, 10 Aug 2016

By Paul McBeth Aug. 11 (BusinessDesk) - Reserve Bank governor Graeme Wheeler signalled another interest rate cut will follow today's quarter-point reduction, and that he may need to plumb ever-lower depths if the kiwi dollar continues to fly against projections or inflation expectations stay muted. Wheeler reduced the official cash rate 25 basis points to 2 percent and said the bank's current projections "indicate that further policy easing will be required to ensure that future inflation settles near the middle of the target range." The...

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