NZD/USD RISES TO NEAR 0.5550 FOLLOWING RBNZ INTEREST RATE DECISION
NZD/USD RISES TO NEAR 0.5550 FOLLOWING RBNZ INTEREST RATE DECISION
On April 9, 2025, the Reserve Bank of New Zealand (RBNZ) reduced the official cash rate (OCR) by 25 basis points to 3.50%, marking the fifth consecutive rate cut since August 2024.
The rate reduction aligned with market forecasts, aiming to stimulate economic recovery following a recession and bring inflation within the RBNZ's 1%-3% target range.
Following the announcement, the NZD/USD currency pair edged higher, trading around 0.5540 during Wednesday's Asian session.
The RBNZ has indicated the possibility of additional rate cuts, with nearly 90% of economists predicting another 25 basis point reduction in May 2025.
The series of rate cuts aims to support New Zealand's economic recovery, with the economy showing signs of improvement, including a 0.7% expansion in the last quarter of 2024.
