New Zealand Central Bank Hold Interest Rates

Corporate FX: In an attempt to boost its country's economic recovery, New Zealand's central bank opted to hold interest rates at a record low. Chris Hunter, Dealing Manager at Western Union Business Solutions in Auckland, comments.

Corporate FX:

A surprising fall in New Zealand consumer prices has allowed the central bank to hold interest rates at a record low and prompted a drop in the currency, according to Bloomberg.

The interest rates have been kept steady to allow the bank leeway as global risk threatens to derail a limp recovery in the domestic economy. Reuters analysts had polled a 0.4 per cent increase in the fourth quarter, in line with the Reserve Bank of New Zealand's (RBNZ) forecasts, but the country actually saw a 0.3 per cent decline from the third quarter, contrary to any forecasters' predictions.

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