New Zealand joins global shift away from high rates

Bloomberg

New Zealand’s central bank joined the global shift away from higher interest rates, saying its next move is more likely to be a cut and sending the kiwi dollar tumbling by the most in seven weeks.
“Given the weaker global economic outlook and reduced momentum in domestic spe-nding, the more likely direction of our next OCR move is down,” Governor Adrian Orr said in a statement in Wellington on Wednesday after leaving the official cash rate at 1.75 percent. “Core consumer price inflation remains below our 2 percent target mid-point, necessitating continued supportive monetary policy.”
The RBNZ’s pivot matches central banks around the world that are becoming more cautio-us about slowing global growth and downside risks to inflation.