<p>The New Zealand dollar is getting slammed after the country's central bank unexpectedly lowered rates.</p><p>The currency - nicknamed the kiwi - fell against the US dollar after the Reserve Bank of New Zealand lowered its official cash rate by 25 basis points to 2.25%.</p><p>In its policy <a href="http://www.rbnz.govt.nz/news/2016/03/official-cash-rate-reduced-to-2-25-percent">announcement</a>, the bank said the outlook for global growth had become more bleak since its December statement "<span>due to weaker growth in China and other emerging markets, and slower growth in Europe."</span></p><p>The bank said that it might be necessary to add more policy stimulus to boost inflation. The bank pushed out its forecast for 2% inflation to Q1 2018 from Q4 2017.</p><p>The kiwi fell by as much as 1.20% to as low as 0.6670 against the US dollar. </p><p>Here's a chart showing the drop:</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/56e082929105842a008b5487-1146-573/screen shot 2016-03-09 at 3.03.36 pm.png" alt="Screen Shot 2016 03 09 at 3.03.36 PM" data-mce-source="Investing.com" /><p class="source"><span>Investing.com</span></p></div><p></p></div></div></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/how-to-use-q-tips-to-clean-your-ears-2016-3">Here's why you should never put Q-Tips in your ears</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="Nrb3Q4MTE6lwnAMmIXjHfqYBHd7L6bF8" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'Nrb3Q4MTE6lwnAMmIXjHfqYBHd7L6bF8',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

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New Zealand's central bank just cut rates unexpectedly and the kiwi is getting crushed

The New Zealand dollar is getting slammed after the country's central bank unexpectedly lowered rates.The currency - nicknamed the kiwi - fell against the US dollar after the Reserve Bank of New Zealand lowered its official cash rate by 25 basis points to 2.25%.In its policy announcement, the bank said the outlook for global growth had become more bleak since its December statement "due to weaker growth in China and other emerging markets, and slower growth in Europe."The bank said that it might be necessary to add more policy stimulus to boost inflation. The bank pushed out its forecast for 2% inflation to Q1 2018 from Q4 2017.The kiwi fell by as much as 1.20% to as low as 0.6670 against the US dollar. Here's a chart showing the drop:Investing.com NOW WATCH: Here's why you should never put Q-Tips in your ears if (typeof RunFunctions === 'undefined') { var RunFunctions = []; } RunFunctions.push(function() { var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'Nrb3Q4MTE6lwnAMmIXjHfqYBHd7L6bF8',{ autoplay: 'false' }); }); Please enable Javascript to watch this video (function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }());

The New Zealand dollar is getting slammed after the country's central bank unexpectedly lowered rates. The currency - nicknamed the kiwi - fell against the US dollar after the Reserve Bank of New Zealand lowered its official cash rate by 25 basis points to 2.

New Zealand's central bank just cut rates unexpectedly and the kiwi is getting crushed

Akin Oyedele

NOW WATCH: Here's why you should never put Q-Tips in your ears

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