RBNZ’s Orr: Too early to tell if another cut was needed

Reuters reports the latest comments delivered by the Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr in an interview with Radio NZ, justifying the central bank’s latest rate cut move.

Recall that the RBNZ cut its Official Cash Rate (OCR) to a fresh record low of 1.50% on Wednesday amid the weaker NZ economic situation.

Key Quotes:

“The interest rate cut would put more money into the economy, but it was too early to tell if another cut was needed.”

"The reason that we've moved now is because our forward projection [showed] a lower rate ... looks sensible."

"The committee thought very hard about, 'do we wait or do we move now?”

"Moving now is the best choice for us as far as we consider because it means we get ahead of the curve - we aren't chasing the economy in cycles, we're actually getting ahead and removing the cycles."

Asked if he though the retail banks should pass on all of the rate cut to consumers, Orr said: "Be an active consumer, don't be a passive recipient."