[Wellington 16th Reuters]-Reserve Deputy Governor of the Reserve Bank of New Zealand (Central Bank, RBNZ) needs additional rate cuts in talks after the third quarter quarterly consumer price index (CPI) statistics announced Recognized that it might become.
The third quarter CPI announced by the Statistics Bureau was only 1.5% higher than the previous year, slowed down from 1.7% in the second quarter, and far from the central bank target (1-3%). . However, the economist forecast (up 1.4%) was higher.
“We may still need a lower interest rate to achieve the goals of inflation and sustainable full employment,” he said at an investment-related meeting in Sydney.
He explained that he is preparing to take less traditional monetary policy measures when the policy rate reaches the “de facto lower limit (ELB)”.
Sharon Solner, chief economist at the Bank of Australia and New Zealand (ANZ) <ANZ.AX> points out that the central bank continues to focus on the slowing economy. “In order to support the inflation outlook, the central bank will cut interest rates in November, February and May, and the policy rate will be reduced to 0.25%.”