Kiwi decision weakens the Kiwi!

The outlook for Kiwi buyers has improved a little as the markets price in the prospect of the Reserve Bank of New Zealand cutting their interest rate. The RBNZ has switched their policy to slight easing bias in light of recent developments globally but principally in their region. The Chinese economy has really struggled this year and this is putting pressure on the New Zealand economy since the Kiwi economy relies so heavily on Chinese demand which supports that area of the world.

The RBNZ met last night to discuss their policy outlook and this has made it likely that they will be likely to cut rates rather than be raising in the future. The market is therefore pricing in the possibility of further NZD weakness if they do cut rates. This is presenting some better opportunities to buy NZD although the problem is that the pound is likely to fall further so making careful plans around your exchange is a very sensible move! For more information please email [email protected]