ANZ, the Australian bank, said it now expected two further interest rate cuts after the dovish pivot. The New Zealand dollar fell 1.1 per cent against the US dollar to a four-month low.

The Reserve Bank of New Zealand delivered another interest-rate cut, extending an aggressive cycle that began midway through last year as the economy struggles to gain momentum.

New Zealand's central bank cut its benchmark official cash rate by 25 basis points to a three-year low of 3.00% on Wednesday, as policymakers sought to revive a struggling economy and buffer it from external headwinds.