XE Data Update - US Fed Cuts Interest Rates To Near Zero

The US Federal Reserve cut is benchmark rate by a 1.00% to near zero and will boost its bond holdings by USD$700 billion

Key points in their statement are:

• Fed cuts interest rates to near zero in response to coronavirus crisis, risks to economic outlook
• Fed says expects target interest rate will remain in range of 0 and 0.25% until economy has "weathered recent events" and is on track to meet inflation and employment goals
• Fed says crisis has "harmed communities and disrupted economic activity" in U.S. And other countries, will weigh on activity in the near term
• Fed says will use "full range of tools" to support economy, will expand holdings of treasury securities by $500 bln and mortgage backed securities by $200 bln in coming months
• Vote on policy action was 9 to 1
• Federal reserve cuts rates to near zero
• Fed announces coordinated action with bank of Canada, Bank of England, Bank of Japan, European Central Bank and Swiss National Bank
• Fed says six global central banks have agreed to lower pricing on U.S. Dollar liquidity swap arrangements by 25 bps
• Fed and other global central banks will begin offering U.S. Dollar liquidity in each jurisdiction with 84-day maturity
• Federal reserve says it will lower the primary credit rate by 150 basis points to 0.25 percent, effective march 16
• Fed says it supports firms that choose to use their capital and liquidity buffers to lend and undertake other supportive actions in a safe and sound manner
• Fed says that depository institutions may borrow from the discount window for periods as long as 90 days, prepayable and renewable by the borrower on a daily basis
• Fed says reducing reserve requirement ratios to zero percent effective on March 26
• Fed says encourages depository institutions to utilize intraday credit extended by reserve banks, on both a collateralized and uncollateralized basis

The NZD is higher in immediate response in skitterish trading.

Current indicative levels are:

NZDUSD 0.6065 / 0.6090

NZDEUR 0.5435 / 0.5465

NZDGBP 0.4905 / 0.4940

NZDJPY 64.60 / 65.10

NZDAUD 0.9705 / 0.9740

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