World Economy

NZ Likely to Cut Rates Again

NZ Likely to Cut Rates AgainNZ Likely to Cut Rates Again

New Zealand’s central bank has cut interest rates three times this year and economists say there is more easing to come as the nation grapples with tepid inflation and weak dairy prices, Dow Jones reported. The country lifted rates four times in 2014, encouraged by surging Asian demand for its dairy products; a booming housing market in its largest city, Auckland; and the need for post-earthquake reconstruction in the second biggest city, Christchurch. Cracks, however, began to appear in New Zealand’s agriculture-rich economy as dairy prices tumbled. They are currently around half the level they were at in early 2014.