New Zealand Dollar Edges Higher
The New Zealand dollar edged up to $0.564 on Friday, extending its recovery from a two-week low, as investors assessed the Reserve Bank’s policy outlook. RBNZ Assistant Governor Karen Silk indicated that a December rate hike could be warranted if price pressures persisted and domestic and global economic conditions proved more resilient than expected. Her remarks followed comments from Governor Anna Breman on Thursday, who signaled a strong likelihood of a December increase, adding that all committee members agreed further monetary tightening would likely be necessary, although the timing would depend on inflation and economic outlook. The central bank caught markets off guard on Wednesday by holding its cash rate at 2.75%, while leaving the door open for future hikes. Markets are pricing in a rate hike in December and see the OCR peaking at 3.75% or higher. Despite the gains, the kiwi is down 1% this week after two straight weeks of advances, but remains up 0.1% for the month.
The New Zealand dollar edged up to $0.564 on Friday, extending its recovery from a two-week low, as investors assessed the Reserve Bank’s policy outlook. RBNZ Assistant Governor Karen Silk indicated that a December rate hike could be warranted if price pressures persisted and domestic and global economic conditions proved more resilient than expected. Her remarks followed comments from Governor Anna Breman on Thursday, who signaled a strong likelihood of a December increase, adding that all committee members agreed further monetary tightening would likely be necessary, although the timing would depend on inflation and economic outlook.
The central bank caught markets off guard on Wednesday by holding its cash rate at 2.75%, while leaving the door open for future hikes. Markets are pricing in a rate hike in December and see the OCR peaking at 3.75% or higher. Despite the gains, the kiwi is down 1% this week after two straight weeks of advances, but remains up 0.1% for the month.