Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


NZ dollar gains as RBNZ lifts rates, sees faster growth

NZ dollar gains as RBNZ lifts rates, sees faster economic growth

By Paul McBeth

April 24 (BusinessDesk) - The New Zealand dollar gained against other currencies after Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while lifting his estimate for economic growth in the March year to 3.5 percent.

The kiwi rose to 86.24 US cents at 5pm in Wellington from 85.92 cents at 8am and 85.94 cents yesterday. The trade-weighted index advanced to 80.21 from 79.99.

Wheeler hiked the OCR a quarter-point to 3 percent, his second 25 basis points increase in as many months, as he looks to head off inflationary pressures. Noting the strength of the kiwi dollar was unsustainable and holding back tradable inflation, the central bank raised its estimate for gross domestic product growth to 3.5 percent in the year ended March 31 from a previous forecast of 3.3 percent last month.

“If anything, the RBNZ is very happy with the current situation apart from the currency, which there’s very little it can do about. At least they’re not half-heartedly trying to jawbone the currency down when everyone knows it’s going to have a very muted impact,” said Stuart Ive, senior client adviser at OMF in Wellington. “They revised the economy higher regardless of the currency, and the kiwi for now is relatively underpinned.”

New Zealand and Australian markets will be closed on Friday for the Anzac Day public holiday, leaving traders to focus on the German IFO business sentiment survey, and a speech by European Central Bank president Mario Draghi.

The US Federal Open Market Committee policy review meeting, US employment data, and Chinese manufacturing figures will attract attention next week.

The local currency was little changed at 88.21 yen at 5pm in Wellington from 88.15 yen yesterday, and rose to 92.76 Australian cents from 92.59 cents. It increased to 62.38 euro cents from 62.22 cents yesterday, and advanced to 51.36 British pence from 51.07 pence.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


International Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news