New Zealand Dollar Attempts to Rebound
The New Zealand dollar edged up to around $0.563 on Thursday, attempting to rebound from a two-week low after RBNZ Governor Anna Breman signaled a strong likelihood of a December rate hike. She noted that all committee members agree that further monetary tightening is likely, though the timing remains uncertain and will depend on the economic outlook and inflation developments. Her comments came a day after the central bank surprised markets by holding the cash rate at 2.75% but left the door open for future rate hikes. Markets are currently pricing in a 77% probability of a rate increase at the RBNZ’s final policy meeting of the year. Meanwhile, data showed business confidence rose slightly in October, with all indicators of future activity turning positive despite fluctuations in oil prices.
The New Zealand dollar edged up to around $0.563 on Thursday, attempting to rebound from a two-week low after RBNZ Governor Anna Breman signaled a strong likelihood of a December rate hike. She noted that all committee members agree that further monetary tightening is likely, though the timing remains uncertain and will depend on the economic outlook and inflation developments. Her comments came a day after the central bank surprised markets by holding the cash rate at 2.75% but left the door open for future rate hikes. Markets are currently pricing in a 77% probability of a rate increase at the RBNZ’s final policy meeting of the year.
Meanwhile, data showed business confidence rose slightly in October, with all indicators of future activity turning positive despite fluctuations in oil prices.