New Zealand central bank holds rates, says next move likely down

[WELLINGTON] The Reserve Bank of New Zealand (RBNZ) on Wednesday held the official cash rate (OCR) at a record low of 1.75 per cent but revised its outlook to say the next move in interest rates was more likely to be down.

"Given the weaker global economic outlook and reduced momentum in domestic spending, the more likely direction of our next OCR move is down," Governor Adrian Orr said in a statement accompanying the policy decision.

Wednesday's statement dropped the outlook in the previous policy statement that the RBNZ expected to hold the OCR steady through 2020. The New Zealand dollar dropped sharply by almost 1 US cent to around US$0.6812 immediately after the decision was released.

REUTERS