The New Zealand dropped today after data showed that New Zealand’s inflation last quarter was the slowest in more than a decade. The negative report led to speculations about an interest rate cut from the nation’s central bank.
The New Zealand Consumer Price Index rose 0.8 percent in the third quarter of 2012 from a year ago. That was the slowest inflation rate since the fourth quarter of 1999. Consumer prices were up 0.3 percent last quarter from the quarter before, while growth by 0.5 percent was expected. The Reserve Bank of New Zealand was keeping its main interest rate stable at the record low 2.5 percent since March 2011 and signaled last month that it plans no change to its monetary policy until late 2013.
NZD/USD slumped from 0.8183 to 0.8135, trading near the lowest level in a month, and NZD/JPY dropped from 64.34 to 64.14 as of 9:38 GMT today.
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