The New Zealand Dollar appreciated against the US Dollar, following the RBNZ Rate Statement on Wednesday at 02:00 GMT. The NZD/USD exchange currency rate gained 20 pips or 0.32% right after the release. The Kiwi continued trading at the 0.6340 level against the Greenback.
Reserve Bank of New Zealand released the Official Cash Rate data, which came out in line with the expectations of 1.00%.
According to the official release: “Low interest rates and increased government spending are expected to support a pick-up in domestic demand over the coming year. Household spending and construction activity are supported by low interest rates, while the incentive for businesses to invest will grow in response to demand pressures. Keeping the OCR at low levels is needed to ensure inflation increases to the mid-point of the target range, and employment remains around its maximum sustainable level. There remains scope for more fiscal and monetary stimulus, if necessary, to support the economy and maintain our inflation and employment objectives.”
