25.04.2014 - Strong currency a double-edged sword for New Zealand
The strong New Zealand dollar may be the thing that ends up putting the brakes on the Reserve Bank of New Zealand’s tightening cycle. The RBNZ raised interest rates Thursday for the second straight month, to 3.0%, as the economic expansion gains momentum and inflationary pressures increase. This time, though, the RBNZ abandoned its usual attempts to talk down the currency – which jumped as a result – and noted that the strong local dollar might limit how much the bank needs to raise rates. The so-called Kiwi dollar was trading at 0.86 to the U.S. dollar Thursday afternoon...............................................Full Article: Source
Print