NZ Dollar Mixed, Pays Little Heed to RBNZ Policy Announcement

The New Zealand dollar was mixed today, rising against some currencies and falling versus others. The kiwi paid little attention to the policy announcement from the Reserve Bank of New Zealand, trading sideways following the decision.

The RBNZ left its main interest rate at 1.75%, as was widely expected. The central bank made a pessimistic prediction about inflation in the policy statement:

CPI inflation is expected to weaken further in the near term due to softness in food and energy prices and adjustments to government charges.

As a result, the RBNZ did not expect to change its policy in the foreseeable future, predicting:

Monetary policy will remain accommodative for a considerable period.

NZD/USD rose from 0.7225 to 0.7240 as of 12:01 GMT today, reaching the high of 0.7262. NZD/JPY slipped from 76.63 to 76.50.

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