The exchange rate of the New Zealand dollar has fallen after the central bank decided to significantly reduce interest rates. This decision was made because of the need to support the country's economy in conditions of uncertainty related to the pandemic.
Exporters note that such actions by the central bank are conditioned by a desire to mitigate the negative impact of external factors on the domestic economy. Investors react to this rate cut, shifting positions towards the New Zealand dollar.
"The decision to lower interest rates was made in conditions of instability related to the spread of the coronavirus. This step will help to mitigate the consequences for the economy," noted representatives of the central bank.
