Tepid inflation surprise raises spectre of lower interest rates

Wed, 11 Mar 2015

By Paul McBeth March 12 (BusinessDesk) - Any further downward surprises in New Zealand's already tepid pace of consumer inflation may warrant an interest rate cut, the Reserve Bank says. Governor Graeme Wheeler left the official cash rate unchanged at 3.5 percent, while stripping out any projected hikes from the bank's forecast horizon as a slump in global oil prices keeps a lid on wage and price pressures, by making businesses input costs cheaper. The bank is closely watching firms' behaviour, and while it can look through the recent sli...

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