Rate cut expected, NZ dollar's direction hinges on RBNZ forecasts

(Image: Supplied)

Tue, 18 Feb 2025

The New Zealand dollar is flying high ahead of an expected 50 basis point rate cut on Wednesday but may fall if things pan out as many economists expect. It was trading at 57.38 US cents late Monday, up 1.5% so far this year and well off the low of around 55.18 US cents earlier this month.What's next?Yes, normally, an outsized rate cut would put it under pressure, but given that the move is fully priced, all eyes are on what the bank will signal next. In November, Reserve Bank of NZ (RBNZ) governor Adrian Orr explicitly said the b...

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