New Zealand central bank expects 35 basis points of cuts

WELLINGTON: New Zealand's central bank said on Tuesday that its current interest rate track involves further cuts to balance a number of risks while generating an increase in consume price index inflation.

"Our present judgment is that the current interest rate track, involving an expected 35 basis points of further interest rate cuts, balances a number of risks weighing on the economy, while generating an increase in CPI inflation back toward the mid-point of the 1 to 3 percent target range," Reserve Bank of New Zealand Governor Graeme Wheeler said in a speech to businesspeople in Dunedin, the text of which was released on the bank's website.

The bank in early August cut interest rates by 25 basis points to a record low of 2.0 percent and said further policy easing may be needed.