Reserve Bank of New Zealand Keeps Rates at 2.50%
October 28th, 2009 Posted in Aussie - Kiwi
The USD gained 1.9% versus the New Zealand Dollar ahead of the Reserve Bank of New Zealand’s decision on interest rates. The Australian Dollar was hit particularly hard Wednesday tumbling 1.8% against the greenback to 89.88 U.S. cents after Australian inflation data came in slightly below expectations. This result dampens expectations of further imminent interest rate increases by the Reserve Bank of Australia.
RBNZ governor Bollard held the official cash rate at 2.50% according to analysts’ expectations. He also only slightly moderated his stance on when he expects to start lifting the rate again, stating that “we expect to keep the OCR at the current level until the second half of 2010”. Bollard also urged the government to begin withdrawing some of the fiscal stimulus in the near future.
