日本語
Español
中文
Русский 
- New York 01:14
- London 06:14
- Barcelona 07:14
- Tokyo 15:14
- Sydney 17:14
Daily Market Commentary
This report has been deactivated
0
0
New Zealand Cuts Interest Rates by 150bp to 3.5%
Thu, Jan 29 2009, 02:40 GMT
by Kathy Lien
New Zealand Cuts Interest Rates by 150bp to 3.5%
The Reserve Bank of New Zealand has surprised the markets once again by cutting interest rates 150bp to 3.5 percent, the lowest level in 10 years. Today's rate cut matches their move in December, which at that time, was the largest ever.
Over the course of 2 months, the RBNZ has cut interest rates by 3 percent. Since July of 2008, they have reduced interest rates by a total of 475bp. The larger move was motivated by a worsening outlook for New Zealand exports and the need for more stimulus. The New Zealand government was late to cut interest rates and they are making up for it now.
More rate cuts are still expected according to RBNZ Governor Bollard but they will not be as large. New Zealand rates will probably come down to at least 2.5 percent before they hit a bottom. For the first time since December 2003, Australia now offers now a higher interest rate than New Zealand. This should lead to more strength for AUD/NZD.
The prospect of more rate cuts as well as the threat of a credit rating downgrade should be bearish for the New Zealand dollar and could drive the NZD/USD back towards 50 cents.
Published on Thu, Jan 29 2009, 02:42 GMT
Archive
- US Dollar: FOMC Over, Now What?
Published On Thu, Jan 29 2009, 02:42 GMT - New Zealand Cuts Interest Rates by 150bp to 3.5%
Published On Thu, Jan 29 2009, 02:40 GMT - FOMC Instant Insight: Fed Announcement Triggers Dollar Rally
Published On Wed, Jan 28 2009, 23:20 GMT - Currencies Rally on Obama's Plan to Save Banks
Published On Wed, Jan 28 2009, 23:17 GMT - US Dollar: Acts of Desperation?
Published On Wed, Jan 28 2009, 02:56 GMT
Global Forex Trading Ltd
| 4760 East Fulton Road, Suite 201, Ada, Michigan, U.S.A
http://www.gftforex.com/ | info@gftforex.com
Legal disclaimer and risk disclosure
This forum and the information provided here should not be relied on as a substitute for extensive independent research before making your investment decisions. Global Forex Trading is merely providing this column for your general information. The views of the author are not necessarily those of Global Forex Trading, its owners, officers, agents or employees. In addition, any projections or views of the market provided by the author may not prove to be accurate. Global Forex Trading and Cornelius Luca will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained in this column. Global Forex Trading and Cornelius Luca do not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.Interested in forex trading? forex brokerage firms!
GET CASH BACK FOR YOUR TRADES! Learn more about the Pip Rebate Program
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
©2009 "FXstreet.com. The Forex Market" All Rights Reserved.