New Zealand cuts rate, plans more, as recession looms

NZ central bank cuts rates by a quarter point to 8 percent * RBNZ expects further easing to counter slowing economy * NZ dollar hits one-month low after announcement (Adds updated Reuters poll) By Kazunori Takada WELLINGTON, July 24 (Reuters) - New Zealand's central bank cut interest rates for the first time in five years on Thursday and said it would cut again, betting an economy on the brink of recession would cool the fastest inflation in two years. The New Zealand dollar hit a six-month low on the news of the quarter point cut to 8.00 percent. The currency had rallied to a post-float peak in March as central bank rate rises gave New Zealand one of the the highest borrowing costs in the industrialised world. A majority of analysts had forecast the Reserve Bank of New Zealand would keep rates on hold at this meeting after... [read full story]