Tena koutou katoa, welcome all. The Official Cash Rate (OCR) has been reduced to 1.5 percent. The Monetary Policy Committee decided a lower OCR is necessary to support the outlook for employment and inflation consistent with its policy remit. Global economic growth has slowed since mid-2018, easing demand for New Zealand’s goods and services. This lower global growth has prompted foreign central banks to ease their monetary policy stances, supporting growth prospects. However, there is uncertainty about the global economic outlook. Trade concerns remain, while some other indicators suggest trading-partner growth is ... (full story)

The NZD/USD pair is feeling the pull of gravity, courtesy of the Reserve Bank of New Zealand's (RBNZ) decision to cut rates by 25 basis points to a new record low of 1.5%. The pair is currently trading at 0.6566, having dropped 75 pips to hit a session low of 0.6525 – the lowest level since Nov. 1 – immediately after the rate decision. It is worth noting that while most analysts had anticipated a rate cut, the probability as per the overnight index swap market was just 30%. The kiwi, therefore, could remain under pressure during the day ahead – more so, as New Zealand's government bond yields have dropped following ... (full story)