NZD has reached a new high. Overview for 22.05.2024

The New Zealand dollar is showing a steady rise against the US dollar. The current NZDUSD exchange rate stands at 0.6119.

At its regular meeting, the Reserve Bank of New Zealand decided to keep the interest rate unchanged at 5.5% per annum, precisely as expected. In its comments, the RBNZ stated that monetary policy should remain restrictive for as long as necessary to bring inflation back to the target range of 1-3%.

The consumer price index is expected to reach the target by the end of 2024, which is positive news. Among the risks preventing inflation from stabilising, the RBNZ notes the cooling labour market and the general rise in unemployment rates. Supporting factors include the rise of the housing market’s utility and rental rates and increased spending on insurance and household services.

The RBNZ is pursuing a relatively consistent and stable monetary policy, with the transparency of its approach and decisions creating normal conditions for the NZD’s movement.