The RBNZ cut their official cash rate Wednesday from 5.5% to 5.25% in what was the first “cut” in over 4 years. Some say a shock move but we were not surprised as the central bank pivots off existing tightening policy. More cuts are predicted over the coming months, the next meetings in 2024 are October 9 and November 27.The RBNZ citing recent progress in nearly meeting the banks inflation target of 1-3% (currently 3.3%) and weak domestic growth. Orr saying they are heading into a period of low and stable inflation. The release weighed heavily on the New Zealand Dollar (NZD) dropping 3 quarters of a percent into the evening against the US Dollar (USD) and has extended declines heading into Friday trading.
The current interbank midrate is: NZDUSD 0.5980
The interbank range this week has been: NZDUSD 0.5973- 0.6082