NZ dollar shoots up 1.4USc after OCR cut before easing
The currency rose as high as 73.4USc. With special feature audio.
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Hawke’s Bay
The New Zealand dollar shot up by well over a US cent after the Reserve Bank cut its official cash rate (OCR) as expected.
The currency rose as high as 73.4USc from 72USc just before the central bank’s monetary policy statement was released and was trading about 72.85USc a short time ago.
The Reserve Bank cut the OCR to 2% from 2.25% and says further rate hikes are likely.
ASB Bank’s chief economist Nick Tuffley says the market had priced in two-and-a-half rate cuts ahead of the statement which shows a 90-day bank bill track suggesting the OCR’s low point will be 1.5% or 1.75%.
“That’s a lot of expectation to try to meet,” Mr Tuffley says.
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Jenny Ruth
Thu, 11 Aug 2016
Thu, 11 Aug 2016
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NZ dollar shoots up 1.4USc after OCR cut before easing
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