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

GBP  USD Price Aims for October High as NZD  USD Rate Soars

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.

Greta Thunberg sets sail for Spain ahead of climate summit
Thunberg, 16, found herself stranded in the USA when the COP25 Summit was relocated from Santiago, Chile, to the Spanish city. The trip could take two to four weeks, and November is considered offseason for sailing across the Atlantic.

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:

  • 'We'll have someone there,' Flores says of Kaepernick workout

    '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.
    Apparent meteor flashes across night sky in St. Louis area

    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.
    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.
  • Measures imposed as Beijing pneumonic plague cases confirmed

    Measures imposed as Beijing pneumonic plague cases confirmed

    For CDC , the best way is to make sure your home, including sheds, garages, and recreation areas are free from rodents. In 2014, a person died of the plague in northwestern Gansu province in China and sparked the quarantine of 151 folks.
    Paul Pogba has cast removed in boost for Man United

    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.
    Venice mayor: Climate change to blame for 'apocalyptic' flooding

    Venice mayor: Climate change to blame for 'apocalyptic' flooding

    Water levels receded slightly on Wednesday to 145 centimeters, but were expected to rise back to 160 centimeters during the day. Other tourists in Venice shared photos and videos on social media today showing people wading through the flooded streets.
  • U.S.  submarine found after 75 years

    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.
    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.
    Barty crushes Garcia to level Australia-France Fed Cup final

    Barty crushes Garcia to level Australia-France Fed Cup final

    The 35-year-old was overlooked for the singles rubbers in Perth but insisted she had no plans to step aside from Fed Cup tennis. If the Australian prevails, the deciding doubles will likely pit Barty and Samantha Stosur against Mladenovic and Garcia.
  • Game Freak Not Adding Missing Pokemon to Sword and Shield

    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.
    Spanish striker Villa set to retire from Japan club Kobe

    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.
    Apple under fire over 'sexist' credit card limit

    Apple under fire over 'sexist' credit card limit

    The allegations suggest that the credit limit of potential applicants seeking Apple card is decided by artificial intelligence. Apple's tech-oriented credit card is at the heart of a new investigation into alleged gender discrimination .


Most liked

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).

Saints continue to troll Falcons for Super Bowl LI loss to Patriots
Koo made two more field goals down the stretch and the Falcons held off the Saints (7-2) to earn their second win of the season. Saints: Cornerback Marshon Lattimore left with a thigh injury and guard Andrus Peat left with an arm injury in the first half.

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".

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.

Elton John expands final tour, adds shows in Toronto and Montreal
Elton will also make his return to cities including Miami, Florida; Chicago, Illinois; Houston, Texas; and Kansas City, Missouri. Elton's music has taken him to many places, opened many doors and inspired many passions in his life.

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.

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.

Nike To End Pilot With Amazon
Nike, which generated $36 billion in revenue a year ago , sells its products through a large, global network of retailers. The company has also said it expects that online sales of its products will eventually surpass those sold in stores.

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".

Mitchell Santner becomes New Zealand's T20I trump card
Williamson has appeared in just four matches since New Zealand's final defeat to England in the ICC Men's Cricket World Cup 2019. With the series squared at 2-2, both New Zealand and England hit the pitch to clinch the five-match T20I series.

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.

President's rule imposed in Maharashtra, Shiv Sena moves SC
India's ruling Bharatiya Janata Party ( BJP ) had contested elections with its 30-year old alliance partner Shiv Sena party. Advocate Sunil Fernandes, who is representing the Shiv Sena, said that the party had preferred not to mention its plea.

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.

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.