QE Start! New Zealand dollar hit 0.56

The Reserve Bank of New Zealand (RBNZ) has launched quantitative easing policy (QE) in response to the global pandemic.

RBNZ will launch a bond purchasing program of up to NZ$30 billion, buying multi-year bonds over the next 12 months and NZ$500 million this week.

In response to the outbreak of the coronavirus, RBNZ held an emergency meeting last week and cut the interest rate by 75 basis points to 0.25%, a record low.

The New Zealand dollar fell this morning, falling near 2% against the USD, once breakthrough 0.56 level. The news of QE also dragged down AUD/USD to 0.57 level.