RBNZ’s Wheeler jolts markets with reminder OCR cut still possible, sending kiwi, swap rates lower

Wed, 13 Mar 2013

By Paul McBeth March 14 (BusinessDesk) - The New Zealand dollar dropped by about 1 US cent and swap rates fell after the Reserve Bank warned a surging kiwi for no good reason may force a rate cut, and said it doesn't plan to budge on the official cash rate this year. The kiwi dollar sank as low as 81.63 US cents from 82.60 cents immediately before the statement, and recently traded at 81.82 cents. That's the lowest level since Nov. 22. Reserve Bank governor Graeme Wheeler kept the OCR at a record low 2.5 percent for a 16th straight meeting...

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