WELLINGTON, Aug 8 (Reuters) - New Zealand’s assistant central bank governor said on Thursday there was still a chance the bank would reduce rates again, a day after surprising markets with a steep 50 basis-point cut to the official cash rate (OCR). “We’ve got a more balanced outlook for the OCR now...but even within those projections there’s some probability in there that we will need to reduce the OCR from where it is at the moment,” assistant governor Christian Hawkesby told Reuters in an interview.
Wednesday’s decision stunned markets and sent the New Zealand dollar into a tailspin, which Hawkesby said the central bank had been expecting when deliberating on whether to deliver a bigger cut.
Reporting by Charlotte Greenfield and Praveen Menon Editing by Shri Navaratnam
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