The global economy has slowed, the RBNZ cut Interest Rates

New Zealand's central bank on Thursday lowered interest rates for the 3rd time in 3 months, and signaled further cuts may be needed to push inflation amid slowing economic growth.

"At this stage, some further easing may still be needed," said the Governor of the Reserve Bank of New Zealand, Graeme Wheeler, in Wellington after the announced reduction of interest rates by 25 bps to 2.75%. "It will depend on a series of economic data next."

The RBNZ step at a time in response to the latest projections that indicate economic growth in the 12 months through March will be the weakest in three years, amid falling milk prices and reduced demand. While inflation is also projected to still be held below the target of 2% for the 5th year in a row.

Following the policy decision, most economists predict if the central bank will cut interest rates to 2.5% in the next few months. Which will reverse the rise in interest rates as much as four times in the past year.