NZ Reserve Bank - 1.5% cut the largest in five years
The Reserve Bank yesterday announced its biggest cut in five years, chopping 1.5% off the current base rate.
The New Zealand dollar was oddly little moved by news of the Reserve Bank’s unprecedented 1.5 percentage point cut in the official cash rate to 5 percent.
However this, move had been forecast by numbers of people and industry professionals, dealers said it was a case of no surprise and therefore no reaction.
Wall Street had a volatile day and rallied at the close, which helped the New Zealand dollar test the topside of its recent range, said Imre Speizer, senior market strategist at Westpac.
Around the time Reserve Bank Governor Alan Bollard cut the official cash rate the currency moved a few points but nothing to write home about.
“The over-riding sentiment is still negative. We couldn’t break out of the key resistance at US53.50c,” said Mr Speizer.
“We’ve had three goes at that in the last week,” he said.
But the currency is holding on the downside meaning it is currently locked in a range.
Dr Bollard’s comments about the shallowness of the recession were noted but the picture is of an economy dribbling along.
All-in-all there was nothing to get too excited about in a currency market that is still keeping an eye on volatile global equity markets.
Against the Australian dollar, the New Zealand dollar was A82.20c at 5pm, unchanged from yesterday. It was 49.60 yen from 49.65 yesterday and against the euro it moved from 0.4175 yesterday to 0.4190 today.
Subscribe to financejobs.co.nz for the best finance stories of New Zealand, United States and United Kingdom
Tags: Search Finance Jobs, Finance Blog, Finance Jobs, Finance Career, Finance, Finance Jobs, financial recruitment new zealand, finance jobs online, seek finance jobs, Accounting, Banking, Accounts, fiscal opportunity, Insurance, jobboard, jobs, recruitment, vacancies, online jobs, nz jobs, temporary, permanent, contract, fixed, recruitment agency, resumes, cvs, interviews
admin on January 6th 2009 in Uncategorized










