NZD Unchanged as RBZN Provides Positive Outlook
THE TAKEAWAY: RBNZ keeps cash rate unchanged at 2.50% > Officials provide positive outlook for New Zealand and peripheral economy > NZDUSD unchanged
The New Zealand Dollar was little changed as the Reserve Bank of New Zealand kept their cash rate unchanged at 2.50 percent. RBNZ Governor Alan Bollard said during a news conference that the interest rate outlook remained stable and that short term yields should remain steady for a year. The central bank also expects 3-month bank bills to yield 2.7 percent in the second quarter of 2013 and 2.8 percent in the fourth quarter of 2013.
Moreover, policy officials lowered their annual inflation forecast for 2013 to 1.7 percent, down from 2.3% possibly implying that future rate hikes may be less likely. Furthermore, the bank raised their annual GDP growth expectations to 3.0 percent for March 2014.
Bollard also said that the Australian economy was in good shape and that China’s economy was performing well.
The NZDUSD currency pair was little moved as traders appear to be focused on the FOMC meeting later today where additional QE may be implemented.
NZD/USD, Weekly Chart
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