The New Zealand Dollar skyrocketed. Overview for 13.11.2019
On Wednesday, NZDUSD updated its weekly highs after the Reserve Bank of New Zealand kept the key interest rate intact.
The New Zealand Dollar cheered up after the RBNZ’s decision to leave the interest rate unchanged during its November meeting. The current quote for NZDUSD is 0.6401.
So, during its regular meeting, the Reserve Bank of New Zealand didn’t change the key interest rate and left it at 1.0%. However, market players expected it to be cut by 25 basis points, down to 0.75%.
The fact that the country’s Central Bank decided not to cut the rate is quite surprising, at least: the regulator was expected to follow the path of other Central Banks and loosen its monetary policy to support the global trend. However, it seems like the situation in the New Zealand economy allows to stay away from global tendencies and follow events in the world closely. At the same time, it’s quite obvious that lower interest rates might help the country somehow because New Zealand couldn’t escape global trade wars.
Last time the RBNZ cut its key rate was in August, by 50 basis points. Probably, it was a preventive measure by the regulator, which now helps to avoid any abrupt movements.
Keeping the key rate unchanged turned out to be a very pleasant surprise for the New Zealand currency.
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