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.
* Inflation falls to 0.2 per cent, with even rates rising at slowest rate in 14 years
* Unemployment drops to lowest level since 2008 on booming job creation
* New Zealand’s net migration back at record breaking levels at almost 70,000
* Economists hail revival of ‘rockstar’ economy, as strong growth continues
* Reserve Bank opens door to much lower interest rates as it attacks the dollar
* Lower than expected inflation has economists tipping another rate cut