New Zealand Dollar Weakens on Interest Rates & Growth Outlook

The New Zealand dollar extended its losses today on the forecast that the New Zealand central bank would keep the interest rates unchanged and as the economic growth may be slower than previously predicted.

Most experts think that the Reserve Bank of New Zealand would leave the rates unchanged at 3 percent on the tomorrow’s meeting. Some analysts say that the Bank wouldn’t raise the interest rates till the second quarter of 2011. The growth of the New Zealand gross domestic product in the third quarter may be below the forecast of 0.8 percent after the 0.2 percent increase in the second quarter, which was also below the forecasts.

NZD/USD dropped from 0.7571 to 0.7503 as of 10:16 GMT today, following the decline to 0.7482.

If you have any questions, comments or opinions regarding the New Zealand Dollar,
feel free to post them using the commentary form below.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *