Breaking: Reserve Bank of New Zealand cuts key interest rate to 1.50%, NZD slumps to 0.6530

FXStreet Team FXStreet

At its May monetary policy meeting on Wednesday, New Zealand’s central bank, the Reserve Bank of New Zealand (RBNZ) cut its Official Cash Rate (OCR) to fresh historic lows of 1.50% vs. 1.75% previous, as the economy cools and inflation falls further below target.

Fourteen of 20 economists in a Bloomberg survey expected the official cash rate will be lowered a quarter point to 1.5%, while markets put the chance of a cut at about 40%.

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FXStreet Team

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