Global concerns loomed large in the easing bias the Reserve Bank signalled on Wednesday.

The monetary policy committee's conclusion that an even lower official cash rate "may be needed over time" echoes the dovish noises coming from major central banks.

Even though each rate cut leaves fewer bullets in its sorely depleted bandolier and drags us closer to the dreaded zero lower bound, the Reserve Bank cannot ignore the risk that a widening gap between New Zealand and offshore interest rates would push the kiwi dollar higher.


As it is, even with a historically favourable mix of export and