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New Zealand

Carry trade returns high but losses heavy

Though carry trades in various Asian currencies tend to outperform major stock markets, there is a relatively high frequency of large negative returns, research published by the Bank for International Settlements finds.

Fed finally gives Basel II the green light

The Federal Reserve Board on Friday approved the American version of the Basel II framework on risk-based capital requirements. It is the last of the Group of Ten countries, which developed the framework, to do so.

Bollard defends monetary policy framework

Alan Bollard, the governor of the Reserve Bank of New Zealand said yesterday that if the central bank were to aim for exchange rate stability the price to be paid would be big swings in interest rates.

Calls for New Zealand to drop inflation target

The New Zealand stock exchange operator, New Zealand Exchange (NZX), has called for on the country's central bank to abandon its strict inflation target. Michael Cullen, the finance minister, called the suggestion "very interesting and very well…

Brash enters Kiwi fracas

Don Brash, the former governor of the Reserve Bank of New Zealand, has entered the ongoing debate about the relations between the central bank and the ministry of finance.

Inflation surprise lifts New Zealand dollar

New Zealand's benchmark interest rate is widely expected to be raised by a quarter of a percentage point to a record level of 8.25% next week, after a report published today revealed that inflation has risen faster than the Reserve Bank anticipated. The…

New foreign exchange strategy in New Zealand

Allan Bollard, the governor of the Reserve Bank of New Zealand, announced on 13 July that the central bank will move away from its current practice of matching its foreign assets to its foreign liabilities.

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