New Zealand staked out an emphatically transparent monetary policy on Thursday, with the central bank forecasting interest rates will remain at record lows until the “latter part of 2010” as it cut its official cash rate by 50 basis points to a record 2.5 per cent.

The unusual forecast by Alan Bollard, Reserve Bank of New Zealand governor, of sustained low rates for about 18 months underlines the authorities’ aggressive action to help protect the nation in recession.