New Zealand cuts interest rates to record low 2.25 percent

WELLINGTON, New Zealand (AP) — New Zealand's central bank cut its benchmark interest rate to a record low 2.25 percent Thursday and said the rate could go lower yet as the country grapples with weak international growth and lower prices for its crucial dairy exports.

Reserve Bank Governor Graeme Wheeler said in a statement there had been a decline in inflation expectations and there was a risk those expectations became self-fulfilling.