Kiwi takes flight as New Zealand's central bank surprises by standing pat

Adrian Orr governor of the Reserve Bank of New Zealand

Nearly all analysts had forecast a cut in the 1 per cent benchmark rate to a record-low 0.75 per cent, with futures markets having priced in a better-than-75 per cent chance of a cut as slack spending and a global slowdown held New Zealand's economic growth at a six-year low.

The global economy was "at a particular point in the economic cycle" but the New Zealand economy was growing at a faster pace than numerous countries it traditionally compared itself with, he said.

Expectations for an interest rate cut do not rise above 30% before July 2020, according to CME Group's FedWatch tool.

But after two rate cuts this year, the Reserve Bank of New Zealand said it saw no urgency to ease policy again, sending the dollar up by more than 1% and short-dated bond yields and swap rates surging higher.

In August, the official cash rate was cut by 0.5 percentage points to one per cent - a record low.

In a statement this afternoon the central bank said employment remains around its maximum sustainable level while inflation remains below the 2% target mid-point but within the bank's target range.

Downward pressure in NZD/USD has been overwhelming in recent days ahead of a much anticipated interest rate decision by the RBNZ.

Game Freak Not Adding Missing Pokemon to Sword and Shield
Tensions have been high since it was revealed that the game will not be launching with a local Pokedex . Pokemon Sword and Shield launches exclusively or Nintendo Switch on November 15th.

The New Zealand dollar jumped by just over 0.8 United States cents to 64.19 U.S. cents within minutes of the decision being released, with similar strong gains against other major currencies.

The New Zealand dollar gained about three-quarters of a cent against the U.S. dollar after the decision, settling at around 64 USA cents, as financial markets had been favouring a rate cut.

Broadly, the USA dollar remained firm against a basket of its rivals .DXY as weak risk appetite raised the greenback's safe haven appeal. The committee made a decision to leave the OCR unchanged. The Swiss franc rose 0.2% to 0.9908 per dollar, its strongest in a week. Growth in global trade and manufacturing is weak and uncertainty remains high, dampening global business investment.

The economy was expected to pick up through next year with lower rates feeding through into activity, higher wages, and government spending. "However, New Zealand's export commodity prices have been robust, underpinning a positive terms of trade", it said.

The Reserve Bank of New Zealand said aggressive easing earlier this year meant current settings were appropriate, but left the door open for more stimulus.

"To us, the RBNZ's new growth outlook still appears too rosy. moreover, the RBNZ has yet to factor in the economic impact of its impending bank capital increases, for which we expect a bigger economic impact than the RBNZ", he said.

Related News:

  • Medvedev enters meltdown as Nadal rallies for O2 win

    Medvedev enters meltdown as Nadal rallies for O2 win

    Rafa Nadal is now the number one-ranked player in the world, and any time he loses a match, some hard questions will follow. The young Russian was comfortably leading Nadal 5-1 in the decisive set but eventually fell to a cruel defeat.
    Google to shame websites which load slowly

    Google to shame websites which load slowly

    Later on, Chrome may be able to tell you whether it's your device or connection speed that is causing longer load times. For links, Google Chrome will use context menu to let the user know whether the website will be slow or fast.
    George Kittle doubtful for 49ers-Seahawks

    George Kittle doubtful for 49ers-Seahawks

    Bourne later dropped a would-be first down over the middle on a drive in which the 49ers had to settle for a field goal. The Seahawks and 49ers combined for several classic defensive duels the last time they were good at the same time.
  • Alibaba launches US$13.4b Hong Kong listing to fund expansion

    Alibaba launches US$13.4b Hong Kong listing to fund expansion

    It will also spend more on developing Youku, which Alibaba says is one of the leading online video platforms in China . Fresh from the 38 billion dollars of sales at its Singles' Day shopathon confirmed on Monday (November 11).
    Retail inflation jumps to 4.62 pc in October

    Retail inflation jumps to 4.62 pc in October

    Almost 85 percent of respondents forecast retail inflation, due on 12 November, to breach the RBI's medium-term target. On a year-over-year basis, headline inflation is now at 1.8%, vs. consensus of 1.7% and 1.7% previously.
    Costco warns of fake coupon 'scam' circulating on social media

    Costco warns of fake coupon 'scam' circulating on social media

    If you receive a communication that looks like it is from Costco, check to see who sent it. The fake coupon, much like the one below, has been a recurring problem for the retailer.
  • New Skoda Octavia gets official

    New Skoda Octavia gets official

    The dashboard design is also new with a clutter-free look and a larger free-standing central display taking prominence. Skoda's new sedan and wagon has finally been revealed, but we're going to be waiting a while to see it in Australia.
    Jersey ‘dreamers’ make plea for their future as Supreme Court debates DACA

    Jersey ‘dreamers’ make plea for their future as Supreme Court debates DACA

    His attorney general at the time, Jeff Sessions, announced on September 5, 2017, that DACA would be phased out over six months. She said the administration's reasoning to end the program - and "destroy lives" - needed to be articulated clearly.
    Rain, hail...and maybe snow as cold snap kicks in across country

    Rain, hail...and maybe snow as cold snap kicks in across country

    Ireland is set for January-like weather with "colder than normal" temperatures and the chance of snow on higher ground this week. However, rain will develop in the west during the morning and then spread across the country through the afternoon and evening.
  • Google Stadia app has appeared in Google Play Store ahead of launch

    Google Stadia app has appeared in Google Play Store ahead of launch

    Independent researchers have identified that lots of Android antivirus providers aren't especially powerful at catching malware. They will also release their own Best of 2019 picks as chosen by the Google Play editors, also on December 3.
    Salah sidelined for Egypt matches

    Salah sidelined for Egypt matches

    Salah has nine goals in all competitions for Liverpool this season, including five in his past seven outings. The 27-year-old immediately had an ice pack applied to his left ankle upon being withdrawn on Sunday.
    Chrissy Teigen's fantastic  reaction to John Legend being People's Sexiest Man Alive

    Chrissy Teigen's fantastic reaction to John Legend being People's Sexiest Man Alive

    But most importantly, he said his parents, including his dad Ronald, a factory worker, taught him to remain humble and kind. However, the cookbook author was prepared for the backlash. "It's my new Starbucks holiday cup", she tweeted .


Most liked

Founder of Syria's White Helmets aid group found dead in Turkey
Anadolu said police established that no one had entered or left his home around that time and believe he fell to his death. It said in a statement: "It is with very heavy hearts that Mayday Rescue must confirm the death of James Le Mesurier".

Asian equities fall on persisting doubts over US-China trade deal
Trump said he would raise tariffs on Chinese goods "very substantially" if China does not make a deal with the United States. Benchmark 10-year German government bond yields fell the most for a day since June, down 6 basis points at -0.3%.

'We'll have someone there,' Flores says of Kaepernick workout
The NFL and lawyers for Kaepernick and Reid reached a private settlement for an undisclosed sum in February. No. 2, I'm hearing there's at least 10 owners, if not more, that want nothing to do with him.

Don Cherry Doubles Down On Comments Regarding Toronto Immigrants
I can't do that after 38 years". " Don Cherry made remarks that were hurtful, discriminatory, where flat-out wrong", MacLean said. Ron MacLean , his friend and longtime Coach's Corner sidekick, faced heavy criticism for being complicit in Cherry's rant.

Paul Pogba has cast removed in boost for Man United
It came from a blistering counter-attack and a beautifully weighted through ball from Fred, which Martial took in his stride. Since the last global break we have had five wins and we've had a lot of answers to what we're trying to do.

U.S. submarine found after 75 years
The Navy has noted the Grayback was really effective, ranking 20th amid all submarines in total tonnage of enemy vessels sunk. On June 5th, 2019 the team discovered the USS Grayback 100 miles from an area recorded in WWII historical records.

'Berlin rocks' says Elon Musk as chooses European factory
Tesla surprised investors by posting a profit of $143m (€128m) in the third quarter despite a fall in revenue. Berlin's Economics Senator Ramona Pop of the Greens said: "Those who have visions come to Berlin".

Apparent meteor flashes across night sky in St. Louis area
The Taurid meteor shower is visiting Earth once again and it appears to have made a special delivery to Missouri on Monday night. People in both the city and the suburbs reported seeing the flash and lit up social media with posts and pictures.

Spanish striker Villa set to retire from Japan club Kobe
After leaving Atletico, Villa embarked on a successful spell in Major League Soccer for New York City, where he scored 80 goals in 124 appearances.

Disney+ is having some 'unable to connect issues' at launch
If you subscribe to Disney + and Hulu separately, you're paying $12.98, so for a penny more you can bundle it and get ESPN +. The app divides the content into five main categories, Disney , Pixar , Marvel , Star Wars and National Geographic.

ISpy? Facebook Is Using Your iPhone’s Camera Behind Your Back
But it's concerning nonetheless; unwarranted access to your camera is perhaps the most concerning security issue there is. The bug appeared to affect the latest version of iOS , although we were unable to replicate it at the time of this post.

Kaiser Permanente mourns the loss of Bernard J. Tyson, Chairman and CEO
Tyson , who was widely praised for his commitment and contributions to holistic affordable care, died on Sunday morning. Executive Committee Chair Edward Pei called Tyson "an exceptional colleague, a passionate leader and an honorable man".

Logan Paul loses YouTuber boxing rematch in controversial decision
However, Paul pinned KSI's head down as he landed the punch that floored him. "I think that should happen in a few weeks' time". But, of course, KSI was not leaving it there: "I now know what it is like to be a pro fighter , it's tough".

Fortnite EGO Outposts Locations | Lowdown challenge guide
Anyway, in order to find the hidden N, you'll need to know where this location is that's featured in the Lowdown loading screen. Speaking of hidden letters, we've got guides for all of the existing hidden letters in Fortnite Chapter 2 down below.

Mercury’s rare Sun transit will happen on Monday: Here’s how to watch
Mercury will transit across the Sun on Monday, for the first time since 2016, in an event that will not occur again until 2032. During a transit , the interceding body is not sufficiently large to cover whatever it's moving in front of.