Kiwi Plunges As New Zealand Announces “Surprise” Rate Cut, Warns On China

They don’t call it a “currency war” for nothing.
Moments ago, the RBNZ cut rates by 25 bps to 2.25% in the latest shot across the bow in what is now a years-long race to the bottom.
Here are the bullets:
NEW ZEALAND CUTS KEY INTEREST RATE TO 2.25% FROM 2.50% RBNZ SAYS FURTHER EXCHANGE RATE DEPRECIATION IS APPROPRIATE RBNZ SEES INFLATION REACHING 2% IN 1Q 2018 VS 4Q 2017 RBNZ SEES 4Q 2016 ANNUAL INFLATION AT 1.1% VS 1.6% Cue the kiwi plunge:

This post was published at Zero Hedge on 03/09/2016.