Paul Conway, chief economist at the RBNZ told the Wall Street Journal in an interview that the economic outlook remains challenging, and while activity will show improvement a year from now, the central bank is not expecting a full-blooded rebound.

New Zealand’s central bank cut its policy rate by 25 basis points today (August 20) and said that the country’s economic recovery had stalled.

New Zealand's central bank has cut its policy rate by 25 basis points (bps) to a three-year low of 3%, and flags further reductions in the coming months as policymakers warn of domestic and global headwinds to growth.

The Reserve Bank of New Zealand will lower its key interest rate to 3% on Wednesday to support the economy amid contained inflation and labour market weakness, a Reuters poll showed.

The New Zealand Dollar is the worst performer of the G8 currencies so far on Wednesday. The pair has lost more than 1% against the US Dollar, following a “dovish cut” by the Reserve Bank of New Zealand earlier today, which sent the pair to four-month lows at 0.5815.

New Zealand’s central bank plans to cut about a fifth of its workforce in the next two months in response to the government’s decision to limit its funding.

WELLINGTON, Nov 3 (Reuters) - New Zealand’s central bank needs to improve its understanding of how climate change, the macroeconomy and monetary policy interact, Governor Adrian Orr said on Friday.

The central bank on Wednesday kept its cash rate at a record low 0.25% and maintained a ceiling of 100 billion New Zealand dollars ($70.5 billion) for its purchases of New Zealand government bonds.