NZ cuts interest rate to record low

Country's sixth reduction since July last year is aimed at halting decline of the economy.

    New Zealand's economy is tentatively expected to show signs of recovery by the end of the year [EPA]

    "In New Zealand, the impact of difficult trading conditions is showing through clearly in reduced export revenues, weak business sentiment, and sharply curtailed investment and employment," Alan Bollard, governor of the Reserve Bank of New Zealand, said.

    "As economic activity troughs, we expect rapid easing of monetary policy to slow."

    Bollard said that he did not think that interest rates would fall to near zero-rates of other nations fighting recession.

    However, he cautioned that the extent of the world recession and subsequent uncertainty meant that any economic recovery might be later than expected.

    New Zealand is suffering its worst recession since the 1970s, when an oil-price shock hit nations across the globe.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Why Jerusalem is not the capital of Israel

    Why Jerusalem is not the capital of Israel

    No country in the world recognises Jerusalem as Israel's capital.

    Inside the world of Chinese bitcoin mining

    Inside the world of Chinese bitcoin mining

    China is one of the main exchange markets and hosts some of the biggest bitcoin 'mining pools' in the world.

    Africa is not poor, we are stealing its wealth

    Africa is not poor, we are stealing its wealth

    It's time to change the way we talk and think about Africa.