N Zealand central bank seen cutting rates

12 November, 2019 12:00 AM printer

WELLINGTON: Most economists are expecting New Zealand’s central bank to cut rates to a record low at its last monetary policy decision of the year on Wednesday after the bank signalled in recent months it was willing to ramp up stimulus if necessary to combat slowing economic conditions.

Twelve out of 15 analysts polled by Reuters expected the Reserve Bank of New Zealand (RBNZ) would cut rates to 0.75 per cent this week from the current 1 per cent, report agencies.

“The short-term growth outlook is subpar and risks are skewed to the downside, with the RBNZ needing to take out more insurance to prevent a more protracted undershoot of its employment and inflation objectives,” Mark Smith, senior economist at ASB Bank, said in a research note.