PRESS DIGEST-New Zealand newspapers - Jan 29

WELLINGTON, Jan 29 (Reuters) - Following are some of the lead stories from New Zealand metropolitan newspapers on Thursday.

Stories may be taken from either the paper or Internet editions of the papers.

Reuters has not verified these stories and does not vouch for their accuracy.

DOMINION POST(www.stuff.co.nz)

Mortgage rates: how low can they go?: Homeowners can look forward to another round of mortgage rate cuts if, as expected, the Reserve Bank slashes the official interest rate to 4 per cent or less today.

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Taskforce plan to help Maori in tough times: Maori Affairs Minister Pita Sharples will set up a ministerial taskforce to help Maori weather the economic crisis a move that will come as news to Prime Minister John Key.

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Milk payout cut hits economy: A bigger than expected drop in the milk payout forecast has ripped more than NZ$1 billion out of an already ailing economy.

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Unemployment could exceed 7pc: New Zealand's unemployment rate could skyrocket past 7 percent as the world recession bites, with little the Reserve Bank can do this morning to mitigate the distress that households will face.

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Sanford expects improved trading result: Fishing company Sanford (SAN.NZ) said it expects an enhanced trading result in its current financial year based on a more favourable exchange rate and lower fuel prices.

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NEW ZEALAND HERALD (www.nzherald.co.nz)

Fonterra fights on two fronts: New Zealand's largest company, Fonterra, went into damage control yesterday following announcements of a slashed payout to farmers and over its role in a contaminated milk scandal that killed Chinese infants.