New Zealand Cuts Interest Rate To Record Low 1.75 Pct
Sumaira FH Published November 10, 2016 | 02:05 AM
WELLINGTON, Nov 9 (APP - UrduPoint / Pakistan Point News - 10th Nov, 2016 ) : New Zealand's central bank cut its benchmark interest rate by 0.25 percent to a record low of 1.75 percent Thursday, citing low inflation and uncertainty in international markets.
"Political uncertainty remains heightened and market volatility is elevated," the bank said in a statement announcing the widely anticipated move. While the bank's decision was made public on Thursday, it was taken prior to Donald Trump's shock win in the US presidential election Wednesday.
It hinted that the current cycle of rate cuts may be over, saying inflation should rise to the middle of the bank's 1.0-3.0 percent target. However, the bank said it was ready to take further action of needed.
"Numerous uncertainties remain, particularly in respect of the international outlook, and policy may need to change accordingly," it said.
Reserve Bank governor Graeme Wheeler is scheduled to take a press conference later Thursday, where he is set to be asked about the impact on Trump's victory on international markets.
New Zealand's economic growth has remained strong at 3.6 percent in 2015/16, despite an international downturn in dairy, one of its major exports. The New Zealand Dollar has also remained stubbornly high, despite the central bank's efforts to talk it down, helping keep inflation below target.
The Currency rose 0.64 US cents to 73.59 US cents after the announcement. Westpac economist Imre Speizer said it appeared the bank was taking a neutral stance on further rate reductions after the current round of cuts began in July 2014, when the benchmark rate was 3.50 percent. "This suggests a period of policy stability ahead," he said.
Related Topics
Recent Stories
Rock-solid Ruud racks up season-leading win in Barcelona
At UN, Iran says it will make Israel 'regret' reprisals
G7 hears calls for 'critical' Ukraine aid
EU seeks to leverage might to confront China, US challenge
5 Customs officials martyred as their vehicle ambushed by terrorists in D I Khan
Pak-New Zealand match called off due to rain
NHA restores traffic on roads affected by recent rains in Balochistan
China to fully support Pakistan's efforts against terrorism: Ambassador Jiang
U.S. envoy calls on Foreign Minister Ishaq Dar
Poland arrests man over suspected plan to kill Zelensky
EU wants to ease youth movement to and from UK
Police foils attempt of supply mainpuri raw material
More Stories From World
-
At G7, Blinken seeks European support for pressure on China
5 hours ago -
Thousands of Bosnian Serbs rally against UN resolution on Srebrenica
5 hours ago -
Israel assault has turned Gaza into 'humanitarian hellscape': UN
6 hours ago -
Husband of ex-Scottish leader charged over alleged embezzlement: police
6 hours ago -
Ecuador hit by power cuts of up to 13 hours amid drought
7 hours ago -
Hugs or bullets? How Mexico presidential rivals aim to curb violence
7 hours ago
-
Kenya military chopper crash kills defence chief, senior officers
7 hours ago -
Biden hails 'incredible' Kennedy family backing against RFK Jr.
7 hours ago -
Maldives court frees jailed ex-president ahead of vote
8 hours ago -
Probe into Portugal ex-PM Costa appears to collapse
8 hours ago -
Jury selection stalls in Trump criminal trial
8 hours ago -
At UN, Iran says it will make Israel 'regret' reprisals
8 hours ago