New Zealand Dollar strengths as RBNZ cuts Rates - No further Rates Cuts is the current Outlook

Hi All,

the Reserve Bank of New Zealand cut rates by 100 bp to 6.5% yesterday, with Gov Bollard
saying it’s a “frontloading” of future interest rate cuts. "One should not necessarily expect or build in further cuts of this magnitude. We've done quite a lot right now to try to get rates re-calibrated right down to where we think they should be. One should not assume we would continue in such radical fashion."

The Reserve Bank has meets scheduled for Dec 4 and Jan 29.

The Pounds to New Zealand Dollar Exchange Rate went from 2.76 to 2.71 and you can buy New Zealand Dollars at the moment at 2.7250

Buy For Now

Barbara Rockefeller
Forex Trading Reports - click here for a free trial

New Zealand Need to cut interest rates as recession takes hold

NEW ZEALAND Dollar exchange rate recovered a little and once again below the 2.7000 level. Personally i believe there is a lot of scope for the Kiwi Dollar to fall further and i would not rule out seeing Pound to NZ dollar exchange rate back at the 3.0000 to the Pound.

The economy is very weak with the news last night was that Retail sales volume fell for the second quarter in a row in the three months to June, backing views the economy is in recession and the central bank will keep cutting interest rates. The value of seasonally adjusted sales were down 0.2% on the previous quarter, and allowing for price movements, volumes fell 1.5%, according to official data released by Statistics New Zealand.

Bye for Now

IMS Foreign Exchange

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