FXstreet.com (Barcelona) - Statistics New Zealand official data, published at Friday said, New Zealand retail sales fell in January, as consumers continued to keep their wallets shut amid a deepening recession.

It also state that seasonally adjusted January retail sales were 1.1% on the month, compared with December's revised 0.7% drop.

The weak sales will retain market expectations for the Reserve Bank of New Zealand to continue cutting interest rates albeit at a modest pace, after the central bank on Thursday indicated it was likely to substantially slow its aggressive easing cycle.