New Zealand cuts benchmark interest rate to new low of 1.5%
{{#rendered}} {{/rendered}}Citing lower global growth, New Zealand's Reserve Bank has cut the nation's benchmark interest rate by a quarter point to an all-time low of 1.5%.
The cut on Wednesday brings New Zealand's rate in line with Australia's rate of 1.5%. It was New Zealand's first cut since November 2016, when the bank also cut the rate by a quarter point.
The bank says demand for New Zealand's goods and services has slowed since mid-2018 as global economic growth has moderated. It says employment was near the maximum sustainable level but the outlook for employment growth was subdued.
{{#rendered}} {{/rendered}}The New Zealand dollar fell by about one-third of 1 cent on the news, and was trading at a little under 66 U.S. cents.