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The kiwi dollar is holding below levels the Reserve Bank is forecasting for the third quarter though that’s unlikely to be enough to change its view of the interest rate outlook this week. The central bank will keep the official cash rate at 2.5 percent on Thursday, according to a Reuters survey of 16 economists. The bank will hike the …
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RBNZ’s Wheeler jolts markets with reminder OCR cut still possible, sending kiwi, swap rates lower
The New Zealand dollar dropped by about 1 US cent and swap rates fell after the Reserve Bank warned a surging kiwi for no good reason may force a rate cut, and said it doesn’t plan to budge on the official cash rate this year. The kiwi dollar sank as low as 81.63 US cents from 82.60 cents immediately before …
Read More »RBNZ’s Wheeler to take more advice and make more speeches
Reserve Bank governor Graeme Wheeler will heed the advice of his lieutenants in making major policy decisions and will make more public appearances. The central bank is establishing a Governing Committee made up of himself, his two deputy governors Grant Spencer and Geoff Bascand, and assistant governor John McDermott to “discuss all major monetary and financial policy decisions falling under …
Read More »Kiwi falls as RBNZ’s Wheeler pledges intervention ‘when circumstances are right’
Reserve Bank governor Graeme Wheeler has told manufacturers he will intervene in currency markets if the circumstances will let him smooth the peaks and troughs, though he can’t set the level of the currency. The kiwi dropped half a US cent after the speech’s release. In a speech entitled, ‘manufacturing decline not just a dollar story’, Wheeler told the New …
Read More »RBNZ’s Wheeler keeps OCR at 2.5 percent , still focused on inflation
Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.5 percent, as expected, saying monetary policy is still focused on future inflation and that he’s looking for any sign of more softening in prices. “The bank is closely monitoring indicators for any sign of further moderation and is mindful of recent downside surprises to employment and inflation outturns,” …
Read More »Kiwi dollar ‘significant headwind’ for economy, RBNZ’s Wheeler says
The persistent strength of the New Zealand dollar has been a “significant headwind” to the economy as it erodes export earnings and encourages local consumers to buy foreign-made goods, according to Reserve Bank governor Graeme Wheeler. The Reserve Bank has raised its forecasts for the currency over the coming two years, as international money markets chase yields in a low …
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