New Zealand dollar tumbles 1pc on RBNZ statement

WELLINGTON: The New Zealand dollar was trading 1 percent lower at US$0.6954 after the central bank signalled more rate cuts to come.

"At this state, it seems likely that further monetary policy easing will be required to ensure that future average inflation settles near the middle of the target range," the central bank said in an economic update.

The next rate review is Aug. 11 and the bank is widely expected to cut the rate from 2.25 percent to 2 percent.

Economists also say there may be further cuts this year.