The kiwi is going bananas

New Zealand cut its key interest rate on Wednesday.

In a statement, the Reserve Bank of New Zealand said it was cutting the official cash rate by 25 basis points to 2.5%.

It said, “Growth in the New Zealand economy has softened over 2015, due mainly to lower terms of trade. Combined with increases in the labour supply from strong net immigration, the slowdown has seen an increase in spare capacity and unemployment. A recovery in export prices, the recent lift in confidence, and increasing domestic demand from the rising population are expected to see growth strengthen over the coming year.”

And so, we have yet another interest-rate cut from a major central bank, as the US Federal Reserve heads in the other direction and prepares to likely raise its benchmark rate next week.

In afternoon trade in New York, the New Zealand dollar, or the kiwi, hit 0.6734 against the US dollar.

More to come, refresh this page for updates …

NOW WATCH: We did a blind taste test of popular french fries — the winner was clear

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at