World Economy

RBNZ to Cut Rates

RBNZ to Cut RatesRBNZ to Cut Rates

The team at BNZ research, sees easing potential by the Reserve Bank of New Zealand ahead in September, but also cautions against a possible upside move towards 0.70 in NZD/USD if the short positions in the pair unwind, FXStreet reported. The RBNZ surprised many by cutting its policy rate at the June meeting, by 25bps to 3.25%. It cited concerns about the large blow to national income, which is expected as a result of the plunge in dairy prices. It also emphasized that policy easing was necessary to return headline inflation back to the 2.0% midpoint target.