New Zealand Dollar Exchange Rate Forecast: Reserve Bank of New Zealand (RBNZ) in Focus

05 May 2017 by News Desk   |   SHARE  

The New Zealand dollar exchange rate noted losses at the close of this week as the Aussie dollar pulled it lower. The currencies are closely linked due to the proximity of the nations in the Trans-Tasman meaning bad news for one can impact both. The kiwi dollar had been enjoying gains after inflation forecasts had suggested the June quarter would register a positive number not seen since 2014. The news had been kiwi dollar positive as investors anticipated the possibility of adjustments to the official cash rate (OCR).

Westpac commented: ‘We expect the RBNZ to hold the OCR at 1.75 percent next week. However, with the inflation environment looking firmer than it has been for the past few years, the RBNZ are likely to give a stronger signal that the next move in interest rates will be up. We expect the CB’s interest rate projections to be more consistent with an OCR hike by late 2018 (rather than in 2019 as was assumed in February when they last published projections).’

Any further positive comments for the bank could lend some favour to the New Zealand dollar exchange rate.
Disclaimer: This economic update is provided by FC Exchange a Global Reach Group Company, industry leaders in foreign exchange. Authorised affiliates are permitted to reuse content.

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