New Zealand’s central bank cut its policy rate by 25 basis points today (August 20) and said that the country’s economic recovery had stalled.

The Reserve Bank of New Zealand will lower its key interest rate to 3% on Wednesday to support the economy amid contained inflation and labour market weakness, a Reuters poll showed.

New Zealand's central bank has cut its policy rate by 25 basis points (bps) to a three-year low of 3%, and flags further reductions in the coming months as policymakers warn of domestic and global headwinds to growth.

The New Zealand Dollar is the worst performer of the G8 currencies so far on Wednesday. The pair has lost more than 1% against the US Dollar, following a “dovish cut” by the Reserve Bank of New Zealand earlier today, which sent the pair to four-month lows at 0.5815.

New Zealand’s central bank plans to cut about a fifth of its workforce in the next two months in response to the government’s decision to limit its funding.

New Zealand's economic expansion "has considerable momentum," RBNZ Gov. Graeme Wheeler said after lifting the cash rate by a quarter-percentage point to 3.25%.

New Zealand central bank intervenes in currency for first time in 5 years to curb Kiwi's rise Associated Press Wed, May 8, 2013 at 4:36 AM UTC

The central bank on Wednesday kept its cash rate at a record low 0.25% and maintained a ceiling of 100 billion New Zealand dollars ($70.5 billion) for its purchases of New Zealand government bonds.

New Zealand's central bank is wading into the debate about bitcoin, urging the country's banks and businesses to exercise caution with the virtual currency. How much is this 25-bitcoin really worth?