RBNZ Says Ready to Cut Rates Further If Price Outlook Eases
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New Zealand's central bank is ready to cut interest rates further if the outlook for price pressures continues to soften as expected, chief economist Paul Conway said, warning that US tariffs are likely to damp economic growth and inflation.
While the Reserve Bank held the Official Cash Rate at 3.25% at its last meeting on July 9, 'we see scope to lower it further if medium-term inflation pressures keep evolving as we anticipate,' Conway said in a speech Thursday in Wellington. 'We are watching closely, we are constantly updating our analysis and we are ready to adjust the Official Cash Rate as needed.'
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