New Zealands central bank is moving toward a lower neutral interest rate as inflation subsides and pandemic-related disruptions wane. Reserve Bank of New Zealand (RBNZ) Chief Economist Paul Conway highlighted the need

A top New Zealand central banker said on Wednesday the official interest rate will move towards a lower, neutral level in the absence of future shocks to the system, as pandemic-related disruptions abate and inflation subsides.

With the economy still in a deep recession and unemployment elevated, the prospect of a 75 basis point cut by the Reserve Bank of New Zealand next month isn’t being ruled out by economists.