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.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Job Cutter Goes: Mark Weldon To Step Down As MediaWorks CEO

“When I joined MediaWorks in August 2014, I had a mandate to lead a significant change programme to bring the business back from receivership into a position where it could once again be a strong competitor in the market, with a sound and sustainable future. It was a big brief, laden with inherent challenges, but I took it in good faith and have dedicated myself fully to the goal since." More>>

ALSO:

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news