Wheeler risks failure in trying to weaken kiwi dollar with rate cuts this year

Mon, 07 Mar 2016

By Jonathan Underhill March 7 (BusinessDesk) - Reserve Bank governor Graeme Wheeler achieved diminishing returns from cutting the official cash rate four times last year when the trade-weighted index stopped falling in September, putting a line under his ability to encourage imported inflation. Economists and traders expect Wheeler will keep the OCR at 2.5 percent this week but bets on the decision have narrowed, with a 56 percent probability of no change and about 44 percent odds he will cut, based on the overnight interest swap curve....

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