Unexpected rate cut to 5.25% boosts New Zealand shares

Symbolic image: stock market · Photo: Wikimedia Commons (public domain)

New Zealand's central bank unexpectedly cut interest rates to 5.25%, leading to a sharp rise in the NZX 50 share index. Meanwhile, the New Zealand dollar fell and two-year government bonds hit their lowest level since February 2023. However, experts warn that the tailwind for the stock market may not last.