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MNI INTERVIEW: RBNZ To Accelerate Cuts If Needed-Conway

RBNZ Chief Economist Paul Conway discusses the rate outlook and forecasting.

MNI (MELBOURNE) - The Reserve Bank of New Zealand will accelerate cuts to the Official Cash Rate should the economy slow faster than anticipated, its chief economist told MNI, dismissing criticism of the Bank's forecasting capacity following its abrupt shift to a more dovish stance.

The RBNZ’s moves to slash its anticipated rate path and cut the overnight cash rate by 25 basis points to 5.25% on Wednesday, despite having earlier insisted that easing was distant, resulted from a significant economic slowdown and changes in inflation expectations since the last forecast round in May, Paul Conway told MNI in an interview.

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MNI (MELBOURNE) - The Reserve Bank of New Zealand will accelerate cuts to the Official Cash Rate should the economy slow faster than anticipated, its chief economist told MNI, dismissing criticism of the Bank's forecasting capacity following its abrupt shift to a more dovish stance.

The RBNZ’s moves to slash its anticipated rate path and cut the overnight cash rate by 25 basis points to 5.25% on Wednesday, despite having earlier insisted that easing was distant, resulted from a significant economic slowdown and changes in inflation expectations since the last forecast round in May, Paul Conway told MNI in an interview.

Keep reading...Show less