The Reserve Bank of New Zealand decided to cut the benchmark lending rates by 25bps in its monetary policy meeting announcement, bringing the interest rates down from 3.00% to 2.75%. The RBNZ's statement was interpreted as very dovish with the Central Bank signalling scope for further rate cuts with the rate forecast for 2015 revised down to 2.50%. Slowing demand from China and global uncertainty was cited as one of the reasons for a drop in commodity prices. The RBNZ stated that further depreciation in the New Zealand Dollar's exchange rate was warranted to reflect changing conditions. Also mentioned was that in the event of continued weakening demand from China, the Central Bank would not hesitate to slash interest rates interest rates to as low as 2.00%. The NZDUSD pair fell sharply on the RBNZ's decision and comments, already giving up -1.75% for the day.