The New Zealand dollar slumped to a four-month low after the country’s central bank lowered interest rates and signalled further cuts to combat a weak domestic economy and global uncertainty over Donald Trump’s tariffs.
The Reserve Bank of New Zealand cut interest rates by a quarter of a percentage point to 3 per cent, as expected, but revealed that two of the six members of its Monetary Policy Committee voted for a bigger cut of half a percentage point.
Economists at RBC Capital Markets said the outlook represented a “big shift in tone” from the July meeting, when the central bank held interest rates amid concerns over inflation.
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