I've been debating this with a few colleagues of late. We all know the guvna is playing currency wars for the exporters, inflation is a lost cause as there's not much of that going around anywhere at the moment.
First glance it looks like cutting below the 3% OCR level has caused the NZD to rally (as seen in below graph)
Attachment 8323
However that poses the question, where would the NZD be now if they hadn't have cut further to 2%?
Wheels is in a tough position, reluctantly cutting to keep the currency under control somewhat. Only positive is that the banks are not fully passing on the cut to borrowers/savers so it isn't fueling the housing fire as much.