Live news: New Zealand and Sri Lanka cut interest rates

Central banks in New Zealand and Sri Lanka cut their interest rates on Wednesday, tracking recent easing from the US Federal Reserve.

The Reserve Bank of New Zealand reduced rates to 4.25 per cent from 4.75 per cent, in line with expectations. The New Zealand dollar rose 0.3 per cent against its US counterpart following the announcement.

The Central Bank of Sri Lanka introduced a single overnight policy rate and set it at 8 per cent, which it said was equivalent to a 50 basis point reduction from its previous lending and deposit rate facilities. The Sri Lanka rupee was flat at SLRs291.10 per dollar.

Equity markets in Asia were muted, with Japan’s Topix declining 0.9 per cent and China’s CSI 300 index flat in early trading.