A 50bps cut by the Fed will give the kiwi wings

New Zealand banks expect some volatility this week whatever the Federal Open Market Committee decides. (Image: Getty)

Wed, 18 Sep 2024

The New Zealand dollar stands to lose some hard-won ground if the US Federal Reserve only cuts by 25 basis points, but it is a line-ball call. The kiwi was trading at US61.90c late Tuesday in Wellington and markets were pricing a 56% chance the US Federal Reserve would cut by 50 basis points. Markets upped the ante late last week after articles in the Wall Street Journal and the Financial Times suggested it was a close call. The decision is due Thursday at 6am NZ time. Too aggressive? Capital Economics Group chief econo...

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