15.12.202503:25:40UTC+00New Zealand Dollar Retreats

The New Zealand dollar declined to approximately $0.578, pulling back from its highest level in over two months. This shift followed the Reserve Bank of New Zealand's indication that it plans to maintain the official cash rate steady for an extended period. Governor Anna Breman stated that this projection is based on the assumption that economic conditions will progress as forecasted. She further remarked that according to the November Monetary Policy Statement, the potential for another rate cut in the near future remains slight, despite financial conditions having tightened more than anticipated. These factors tempered the markets' earlier expectations for a rate increase, which had been anticipated for the third quarter of next year. Breman also noted that the economy is largely in line with the Reserve Bank of New Zealand's forecasts, with inflation projected to hit the 2% target by mid-2026. Meanwhile, losses in the New Zealand dollar were somewhat mitigated by the continuing weakness of the US dollar, as the Federal Reserve hinted at a less aggressive monetary path than market predictions.