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Orr also notes "our recent OCR cut reflected...>

RBNZ
RBNZ: Orr also notes "our recent OCR cut reflected an expected decline in
trading partner growth, lower NZ inflation expectations, and a global swing to
lower interest rates. It also reflected the ongoing funk global and domestic
business confidence is in. Geopolitical uncertainty is paralysing decision
making in major business centres - trade tensions, Brexit, Hong Kong, North
Korea and so on - have all meant investment is lower than normal. The NZ waka is
tied off to the global 'risk free' interest rate wharf. When the global rate
declines, we need more rope - or face a rising exchange rate and tighter
financial conditions than needed."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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