New Zealand Cuts Official Interest Rate to Record Low

The New Zealand Reserve Bank on Thursday cut its official interest rate by 0.25% to a record low of 2%. 
A strong New Zealand dollar was making it difficult for the bank to meet its target of 2% inflation, and a further interest rate cut was needed, Reserve Bank Governor Graeme Wheeler said, according to the (dpa). 
Slow global growth also played a role in the decision, he added. 
"The prospects for global growth and commodity prices remain uncertain," Wheeler said. "Political risks are also heightened." The New Zealand dollar rose in value almost one cent on the news, to 73 US cents. 
Wheeler indicated that the country's official interest rate could be cut further in the future. 
"Our current projections and assumptions indicate that further policy easing will be required to ensure that future inflation settles near the middle of the target range," Wheeler said.