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- Reserve Bank of New Zealand Governor Graeme Wheeler: the further interest rate cut by the central bank is likely
Reserve Bank of New Zealand Governor Graeme Wheeler: the further interest rate cut by the central bank is likely
Reserve Bank of New Zealand (RBNZ) Governor Graeme Wheeler said on Wednesday that the further interest rate cut by the RBNZ is likely, but it will depend on the incoming data.
Next central bank's meeting is scheduled to be on October 29.
"We remain conscious of the impact that low interest rates can have on housing demand and its potential to feed into higher price inflation. It is important also to consider whether borrowing costs are constraining investment, and the need to have sufficient capacity to cut interest rates if the global economy slows significantly," he said.
Wheeler noted that the slowdown in the Chinese economy is a risk to the global economy.
"Any substantial depreciation in the RMB (Renminbi) would have serious implications for the world economy: it would risk triggering exchange rate adjustment among competitor economies - particularly in Asia, and would spread deflationary forces across the globe," RBNZ Governor said.
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