• The Reserve Bank has cut the official cash rate to 1.75 per cent.

In a move widely expected by financial markets, irrespective of the US election, governor Graeme Wheeler said the kiwi dollar remained stronger than was sustainable, boosted by New Zealand’s relatively strong interest rates.

“Political uncertainty remains heightened and market volatility is elevated,” Wheeler said.

The kiwi dollar rose slightly on the news, jumping around US0.5c to around US73.37c immediately after the cut was announced.

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reserve-bank-governor-graeme-wheeler

ROBERT KITCHIN/FAIRFAX NZ
Reserve Bank Governor Graeme Wheeler has been signalling for weeks that the central bank was likely to lower interest rates further.

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