WELLINGTON, May 13 (Reuters) - New Zealand's central bank
said on Wednesday it was disappointed by market reaction to its rate cut last month.
The Reserve Bank of NZ cut its cash rate by 50 basis points to a record low 2.5 percent and pledged to keep it there or lower until late 2010.
'It's probably fair to say we have been disappointed by the response to date but having said that the OCR-retail rate relationship is not a precise one,' Deputy Governor Grant Spencer told a media briefing on the RBNZ's six monthly financial stability report.
Spencer said the official cash rate was still an effective monetary tool which had leverage.
((Wellington newsroom tel 64 4471 4234, fax +64 4 4736 212,
wellington.newsroom@reuters.com)) Keywords: NEWZEALAND ECONOMY/RBNZ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
said on Wednesday it was disappointed by market reaction to its rate cut last month.
The Reserve Bank of NZ cut its cash rate by 50 basis points to a record low 2.5 percent and pledged to keep it there or lower until late 2010.
'It's probably fair to say we have been disappointed by the response to date but having said that the OCR-retail rate relationship is not a precise one,' Deputy Governor Grant Spencer told a media briefing on the RBNZ's six monthly financial stability report.
Spencer said the official cash rate was still an effective monetary tool which had leverage.
((Wellington newsroom tel 64 4471 4234, fax +64 4 4736 212,
wellington.newsroom@reuters.com)) Keywords: NEWZEALAND ECONOMY/RBNZ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.