Although the Reserve Bank of New Zealand (RBNZ) will probably leave interest rates on hold at 2.75% at the policy meeting on Thursday 29th October, this will just be a pause in the loosening cycle rather than the end. Our forecast that rates will fall to 2.0% next year suggests that the New Zealand dollar will soon weaken again, perhaps all the way to US$0.55 from US$0.68 now.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services