The New Zealand dollar gained versus the US dollar and kept yesterday’s gains against the Japanese yen today after the Reserve Bank of New Zealand maintained its key official cash rate unchanged.
New Zealand’s central bank left the main interest rate at 2.5 percent. In the rate statement, Governor Alan Bollard mentioned the economic slowdown of its trading partners:
New Zealandâs trading partner outlook remains weak. Several euro-area economies are in recession and Chinese growth has slowed. The risk of significant deterioration in the euro area persists.
Nevertheless, he was optimistic about domestic growth:
Domestically, the Bank continues to expect economic activity to grow modestly over the next few years.
The RBNZ showed in the Monetary Policy Statement that expansion of gross domestic product and inflation slowed in the second quarter of this year. Yet the bank expects that the indicators will improve in the following quarters.
NZD/USD rose from 0.8198 to 0.8215 and NZD/JPY was up from 63.82 to 63.88 as of 3:37 GMT today.
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