The RBNZ “Economic Update” released on its website today significantly expanded its views on the NZD Exchange Rate, suggesting that it will cut rates at its next policy meeting on 11 August in an attempt to offset or weaken the currency. It said today, “The trade-weighted exchange rate is 6 percent higher than assumed in the June Statement, and is notably higher than in the alternative scenario presented in that Statement.  The high exchange rate is adding further pressure to the dairy and...

This insight is part of Smartkarma. For more follow this link.