New Zealand dollar tanks after central bank defies markets' near-certainty it would hike rates

Artherng | Room | Getty ImagesThe New Zealand dollar fell sharply on Wednesday, as markets reacted to an unanticipated interest rate decision from the country's central bank.By 8 a.m. ET, the currency was down 1.3% intraday against both the U.S. and Australian dollars, and had also fallen more than 1% versus the British pound, Japanese yen and euro. Against the greenback, the New Zealand dollar is down almost 5% from six months ago. Stock Chart IconStock chart iconUSD/NZDOn Wednesday, the Reserve Bank of New Zealand's Monetary Policy Committee voted by a slim majority of four to three to keep its key interest rate steady at 2.75%. Traders had been pricing in a rate hike as nearly certain, and economists polled by Reuters had overwhelmingly forecast rates to rise. In the third quarter, New Zealand's annual inflation rate hit 3.7%, down from 4.1% in the previous quarter and lower than expected.The country's central bank, which has an inflation target range of 1% to 3%, has raised rates twice this year, in July and September. In both cases, it cited the economic impact of the U.S.-Iran war. "Global events are adding to near-term inflation pressures in New Zealand," policymakers said i...