RBNZ takes markets by surprise with 0.25% cut, sending kiwi down
Posted on June 11, 2015 at 10:05 am GMTThe Reserve Bank of New Zealand made an unexpected cut in its official overnight cash rate on Wednesday, lowering it by 0.25% to 3.25%. The majority of economists had expected that there would be no cuts this month. Another reason for the surprise was that the RBNZ had previously expressed reservations on reducing the lending rate as it could fuel an already overheated housing market in Auckland, the country’s biggest city. However, in May, the central bank announced new measures [..]