New Zealand's Central Bank cuts rates and sends the NZD/USD down by 2%
- FX Market
- 3 months ago
New Zealand’s central bank has unexpectedly slashed its interest rates to its lowest ever which in turn has triggered the country’s currency to take a significant drop.
The RBNZ (Reserve Bank of New Zealand) monetary policy committee caught markets off guard by lowering its official cash rate by 50 basis points to 1% from 1.50%.
Most analysts had the RBNZ to cut rates by 25 basis points, it did so only in its last meeting in June.
The NZD sold off on news of the rate cut, sliding as much as 2.1% against the USD, its lowest level since 2016, while yields on New Zealand’s sovereign 10-year bonds dropped 15 basis points to 1.137%.
Source: Smart Trend Team