RBNZ Expected to Hold Rates Unchanged

The Reserve Bank of New Zealand (RBNZ) is scheduled to unveil the interest rate decision at its regular meeting on January 27, following the 25 basis points cut to a record low on December 10.

The market survey expects the RBNZ to stay on hold at 2.5%, as the economic development along with anxiety on global markets remains a major reason to keep monetary policy loose, and to allow the effect of December’s cut to have its desired effect on the economy, while the weak kiwi allows the nation to import some much needed inflation.

Nevertheless, traders will closely digest comments by RBNZ Governor Graeme Wheeler, as further dovishness in his statement could send the kiwi back to its lowest level since 2009 at $0.6233 seen in September 2015.

Looking back, central bank officials lowered the main rate in December amid ongoing deceleration of global growth, fragile crude oil prices, along with inflation that remained well below the target level.

via WPBonline

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza