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RBNZ's Wheeler says forecasts show room to cut rates by 35 basis points

Published 08/22/2016, 07:04 PM
Updated 08/22/2016, 07:07 PM
© Reuters.  RBNZ's Wheeler sees room to cut rates

Investing.com - The Reserve Bank of New Zealand's current forecasts for the economy imply 35 basis points of more easing, but emerging data would determine if more or less stimulus than this will be required, Governor Graeme Wheeler said Tuesday.

In a speech to the Otago Chamber of Commerce on the topic "Monetary policy challenges in turbulent times," Wheeler discussed the main challenges confronted by a small open economy.

"Our present judgement is that the current interest rate track, involving an expected 35 basis points of further interest rate cuts, balances a number of risks weighing on the economy while generating an increase in CPI inflation back towards the midpoint of the 1% to 3% target range," he said.

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