The Kiwi jumped against the US Dollar, following the Reserve Bank’s of New Zealand monetary policy announcement. The NZD/USD currency pair added 0.37% or 25 base points to the 0.6951 mark and continued to consolidate in the 0.6956 area.
The RBNZ pushed the Kiwi higher, when saying that the fiscal stimulus from a new government as well as weaker currency are likely to result in a faster inflation growth and earlier rate increase. Meanwhile, the key interest rate remained unchanged at 1.75%. According to the Bank’s projections, next rate hike is more likely to be made in H2 of 2019, three months earlier than anticipated before, as changes in government and broader economic policy could boost economic growth.
