World Economy

NZ Dollar Faces Rate Cut

NZ Dollar Faces Rate CutNZ Dollar Faces Rate Cut

The New Zealand dollar fell for a second successive day on Friday as investors upped the odds that the central bank will cut interest rates in November, News Market reported. It dropped against all its major rivals after the Reserve Bank of New Zealand left rates unchanged on Thursday but said it intends to cut borrowing costs to boost inflation. These days, though, monetary policy is really a matter of what everybody else does. New Zealand has already cut its own base rate–the official cash rate–to a record low of 2%. However, that still leaves the country with a rather attractive yield compared to those on offer elsewhere.