Forex News RBNZ decision to cut official cash rate "the right move" in current economic conditions, says ANZ economist Khoon Goh, noting tighter international credit conditions, higher cost of funds. "The Reserve Bank's cut today is more or less to prevent overall financial conditions from tightening further and we see that as a prudent move in the current environment." Notes RBNZ still has inflation worries, concerned about NZD falling too far too quickly, so expects bank to cut rates at remaining meetings this year before pausing to assess inflation, economic situation. "At the end of the day the OCR is at a pretty high level and has a long way to go still."
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