The Reserve Bank of New Zealand cut rates earlier.

ICYMI:

  • FX analysis on the RBNZ: "NZD exchange rate ... a fairly weak warning"
  • Westpac on the RBNZ rate cut: Not surprised but surprised
  • RBNZ's Wheeler: China building and manufacturing "very much under stress"
  • New Zealand dollar falls more than a cent after surprise RBNZ rate cut
  • Full text of the RBNZ decision March 10, 2016
  • RBNZ cuts rates to 2.25% in surprise move

Governor Wheeler is now answering questions at a parliament committee:

  • More rate cuts will depend on data
  • Could be we don't need any more cuts
  • RBNZ assumes dairy prices will rise from Q4 of 2016
  • RBNZ assumes WMP price reaches $3200 by 2018
  • Structural factors affecting global inflation - these factors are affecting New Zealand
  • No inflation targeting banks have changed framework - inflation targeting framework still highly effective