NZD grew noticeably. Overview for 05.04.2023

The New Zealand dollar against the US dollar reacted positively to the actions of the RBNZ. The current NZDUSD quote is 0.6347.

The Reserve Bank of New Zealand at its April meeting lifted the interest rate to 5.25% per annum from 4.75% previously. The forecast had suggested growth to 5.00%.

It seems that the regulator sees some evidence of growing inflation and acts to prevent it. Unlike its Australian colleague, the RBNZ is more or less consistent in lifting the crediting cost. It has not yet given any signals that the process is about to pause. The RBNZ started the cycle of increasing the interest rate in October 2021. Since then, the rate has grown from 0.25% to 5.25% per annum.

The NZD gets additional support from the weakness of the USD.