RBNZ signals action ‘likely’ amid New Zealand dollar strength
Stronger than anticipated NZ dollar threatens ability to hit inflation target, RBNZ says
The Reserve Bank of New Zealand (RBNZ) says further easing is "likely", as it fears the strength of the country's dollar will make it harder to hit its inflation target.
In an economic update published today (July 21), the central bank said the trade-weighted exchange rate was 6% higher than projected at its last rate decision on June 9. This was higher than both the baseline (gradual depreciation) and alternative (flat) scenarios for the currency set out at the time.
The high exchange rate
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