The Reserve Bank of New Zealand (RBNZ) on Wednesday lowered its interest rate to 2.50% from 2.75%. The RBNZ Graeme Wheeler said on Wednesday that New Zealand's economy softened in 2015, "due mainly to lower terms of trade".

He noted that consumer price inflation in New Zealand is below the 1 to 3% target range, mainly due to the stronger New Zealand dollar and low global oil prices. The RBNZ governor expects that inflation will return inside the target range.

Wheeler said that the central bank plans to achieve the inflation target without any further interest rate cuts, "although the Bank will reduce rates if circumstances warrant".