Analysts at ANZ noted that the RBNZ cut its official cash rate by 25bps to 2.25%. Key Quotes: "The RBNZ also flagged the prospect of further cuts, with a cumulative 50bps reduction in the bill track by September 2017. Two factors were key in the decision: a more fragile looking global scene (though reasonable growth is still expected); and the recent decline in inflation expectations. The recent shift down in inflation expectations does appear to have spooked the RBNZ somewhat. Despite acknowledging that long-term measures have remained stable around 2%, it noted that “there has been a material decline in a range of measures”. We expect two more rate cuts before year end." For more information, read our latest forex news.