New Zealand Bows to Global Easing Pressure Sending Kiwi Tumbling

Updated on
  • Weak inflation expectations may become self-fulfilling: RBNZ
  • Central bank forecasts 90-day bill rate at 2.2% by year-end

Graeme Wheeler, governor of the Reserve Bank of New Zealand.

Photographer: Mark Coote/Bloomberg

New Zealand’s central bank unexpectedly cut interest rates to a fresh record low and said further easing may be needed, joining global counterparts in adding stimulus to an economy struggling to generate inflation. The kiwi plunged almost 1 1/2 U.S. cents.

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