New Zealand - RBNZ opens door to more rate cuts

The Reserve Bank of New Zealand’s hint that the weakening outlook for inflation means that interest rates may have to be reduced this year from the current rate of 2.5% supports our long-held view that rates will fall to 2.0%. The New Zealand dollar has already weakened sharply in response and we suspect it will eventually fall from US$0.64 now to around US$0.60.  

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