New Zealand cuts benchmark rate to record low

Wellington: New Zealand`s central bank cut interest rates to a record low on Thursday, citing the country`s struggling dairy industry and a deteriorating global outlook.

The move -- the fifth reduction since June last year -- trims the bank`s benchmark rate to 2.25 percent from the 2.5 percent set in December, which was itself a record.

"Further policy easing may be required... we will continue to watch closely the emerging flow of economic data," the Reserve Bank of New Zealand said in a statement.

New Zealand, the world`s top dairy exporter, has been hit by a slump in global milk prices as rivals, particularly in the European Union, ramp up production.