International Netherlands: New Zealand's central bank decision warns that the US and UK may face a greater risk of aggressive interest rate cuts.

[ING: New Zealand Reserve Bank Decision Warns US and UK May Face More Aggressive Rate Cuts] Chris Turner from ING stated in a report that the policy decision by the New Zealand Reserve Bank on Wednesday highlights the risks faced by the US dollar and British pound, namely that the magnitude of interest rate cuts could be greater. The New Zealand Reserve Bank lowered the interest rate by 25 basis points, but two decision-makers voted to lower it by 50 basis points. The Reserve Bank indicated that inflation may rise in the short term, but given the slack in the labor market, it should ease next year. Turner pointed out that the Fed and the Bank of England are similarly in a predicament, uncertain how to respond to the short-term rise in inflation. He stated that the decision by the New Zealand Reserve Bank serves as a reminder that if the labor market weakens significantly, other central banks may also accelerate their rate cuts.