Interest rate cuts possible

Recent falls in yields on short-dated bonds suggested the financial market's enthusiasm had diminished for an official cash rate rise at the central bank's next review on January 29, it said in a note to duty minister Trevor Mallard, issued last week.

"Although this is still largely a timing issue, rather than a downward revision to the extent of tightening expected to take place eventually," the note, dated January 9, said.

Read More - Opens in a new window