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Asia, Forex

RBNZ minutes show surprise 50-bp cut debated, decision reached by consensus

WELLINGTON, Aug 7 (Reuters) – Members of the Reserve Bank of New Zealand’s monetary policy committee decided to cut the official cash rate (OCR) by 50 basis points to ensure inflation and employment targets could be met, minutes of the August policy review showed on Wednesday.

“The members debated the relative benefits of reducing the OCR by 25 basis points and communicating an easing bias, versus reducing the OCR by 50 basis points now,” the minutes showed, saying the final decision was reached by consensus.

“They agreed that the larger initial monetary stimulus would best ensure the Committee continues to meet its inflation and employment objectives.”

(Reporting by John Mair Editing by Shri Navaratnam)

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