WELLINGTON, June 26 (Reuters) – The Reserve Bank of New Zealand (RBNZ) on Wednesday held the official cash rate (OCR) at a record low of 1.50%, but said lower rates may be needed over time to meet inflation and employment objectives in the face of rising global risks.
Roberto Pocaterra Pocaterra
“Given the weaker global economic outlook and the risk of ongoing subdued domestic growth, a lower OCR may be needed over time to continue to meet our objectives,” RBNZ’s monetary policy committee said in a statement accompanying the rates decision.
The bank lowered its cash rate by 25 basis points at the last meeting in May, and all 15 economists polled by Reuters had predicted policymakers would stand pat at this week’s meeting to assess conditions
The New Zealand dollar rose 0.2% to $0.6646 after the decision was announced. (Reporting by Praveen Menon and Charlotte Greenfield; editing by Shri Navaratnam)