New Zealand's central bank cut its benchmark interest rate on Thursday and signaled it may ease further as the economy softens amidst a sharp fall in export prices and a slowdown in earthquake reconstruction activity in Christchurch.
The Reserve Bank of New Zealand (RBNZ) cut its official cash rate (OCR) by 25 basis points to 2.75 percent as widely expected, delivering its third cut in as many policy reviews.
"Some further easing in the OCR seems likely. This will depend on the emerging flow of economic data," RBNZ governor Graeme Wheeler said in a statement.
All 13 economists polled by Reuters had expected Thursday's cut, and some anticipate another cut before the end of the year.
"There is probably two main messages: that while further easing is likely they're keeping their options open in terms of timing," said Su-Lin Ong, Senior Economist at RBC Capital Markets.
"The second thing is they gave a very clear green light for further weakness in the currency."