The Reserve Bank of New Zealand reduced the Official Cash Rate by 50 basis points to 2.50% as an emergency response to the Christchurch earthquake. Alluding to the confidence effect of the rate cut, the Bank noted "Business and consumer confidence has almost certainly deteriorated." The Bank said that it would be closely monitor emerging economic data, and that the monetary policy accommodation will need to be removed as the rebuilding phase commences.
www.CentralBankNews.info
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