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.

New Zealand’s central bank cut its policy rate by 25 basis points today (August 20) and said that the country’s economic recovery had stalled.

The Reserve Bank of New Zealand delivered another interest-rate cut, extending an aggressive cycle that began midway through last year as the economy struggles to gain momentum.