The Reserve Bank has cut its benchmark cash rate by 25 basis points to a three year low of 3-percent, as expected.
While the question remains if any more drops are on the horizon, there was an overwhelming expectation the central bank’s monetary policy committee would cut on Wednesday, after pausing in July.
The central bank on Wednesday said it was watching economic numbers and the global outlook which will influence whether a further rate cut is needed.
The RBNZ aggressively cut the Official Cash Rate by 225 basis points from 5.5 percent to the current 3.25 percent from August last year.
RBNZ governor Christian Hawkesby will be speaking this afternoon to explain the decision.
