New Zealand’s central bank slashed interest rates by a hefty half a percentage point and flagged it would consider lowering it further, surprising economists and traders who expected a smaller reduction.
The Reserve Bank of New Zealand’s decision to cut the official cash rate to 2.5 per cent pushed the New Zealand dollar down 1 per cent against the US dollar to a six-month low of US57.43¢. The Australian dollar climbed to a three-year high at $NZ1.14, putting it close to a decade-plus peak.
Loading…