New Zealand: Central bank cuts interest rate to 3%
July 23 , 2015
New Zealand’s central bank has cut interest rates again and indicated that more cuts may follow. Citing low inflation and a softer economic outlook as the reasons behind the cut, the Reserve Bank of New Zealand slashed the rate to 3%.
A sharp fall in dairy prices has hit the country's economy, which is dependent on farming. Dairy exports constitute about one-third of New Zealand’s exports. A slowdown in China, its major trading partner, has also affected exports.