▸ Prospect of further rate cuts drags New Zealand dollar lower▸ Economists note ‘big shift in tone’ from previous meeting of NZ central bank▸ Analysts argue that forex trades do not signal a resurgence for US dollarThe 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 President Donald Trump's US tariffs.The Reserve Bank of New Zealand cut interest rates by a quarter of a percentage point to 3 per cent — as expected — but said 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.ANZ, the Australian bank, said it now expected two further interest rate cuts after the dovish pivot.The New Zealand dollar fell 1.1 per cent against the US dollar to a four-month low.
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