Technology products will be more expensive in New Zealand as KIWI drops 2% by surprise cash rate cut to 2.25%

New Zealanders who are into technology will probably have to pay more for imported technology products purchased online at Amazon.com.

RBNZ surprises the market by cutting the OCR (official cash rate) by a quarter percent, bringing it down to 2.25%.  The surprise cut this morning was unexpected and the immediate news caused the NZD to weaken against the USD by almost 2% within a minute of the announcement.

RBNZ statement, the central bank cites a number of domestic issues weighing on the economy aside from the dairy sector and drop in commodity pricing. It is believed that there will be another interest rate cut in the coming months as NZ is adopting a dovish stance on it’s currency.

Thus, if you intend to purchase any products from the States, it is better to act now before the NZD drops another 1% to 2%. NZD/USD is now at 0.6633, the highest was 0.6820.

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