New Zealand dollar maintain its gains until Thursday (10/12) morning after early this morning, RBNZ OCR interest rate cut again by 25 basis points to 2.5 percent, after cuts last September. Investors regulate what strategy is most appropriate after the policy of the Central Bank of New Zealand. NZD / USD traded higher 0:32 per cent in the number 0.67348 after RBNZ rate cut announcement today.
Can Still Bring Down Again
Not only cut interest rates, the RBNZ also signals a possibility of interest rates already low it could be lowered again. The central bank warned the people of New Zealand, saying that if there is a rise in inflation amid rising house prices as today, then it is likely the value of mortgages will also rise.
"We already estimate that the current interest rate is (slowly) will be achieved, and the central bank will reduce it again if at all possible. We will teurs clamping ekonoi data that exist," said the Governor of the RBNZ.
RBNZ governor, Graeme Wheeler, said that New Zealand's economic growth slowed in 2015, in addition to the increase of migration to New Zealand, which adds to the unemployment rate in line with the slow pace of job creation. Although the economy in 2016 is expected to rise, the recent strengthening New Zealand dollar is somewhat not help contribute sustainable growth, said Wheeler.
With an inflation rate below the 1-3 percent targeted by the RBNZ, interest rate cuts made today was intended to push down the Kiwi dollar and stimulate interest in consumer spending through lower interest rates.
No comments:
Post a Comment