The Reserve Bank of New Zealand unexpectedly cut its official cash rate by 75bps to a record low of 0.25%
The Committee added that if a further stimulus is required at some point, a Large Scale Asset Purchase programme of New Zealand government bonds would be preferable to more OCR reductions.
Policymakers noted the significant negative impact of the coronavirus on the domestic economy and added that spending and investment will be subdued for an extended period.
"The Government is operating an expansionary fiscal policy and has imminent intentions to increase its support with a fiscal package to provide both targeted and broad-based economic stimulus," the bank said in a statement.