NZ dollar rises despite rate cut expectations and high inflation
The New Zealand dollar strengthened as domestically-driven inflation remained high, though headline figures eased to a three-year low. Despite this, markets continue to expect around three rate cuts by the end of the year.
New Zealand’s consumer price index (CPI) rose by 0.4% in the second quarter, slightly below the forecast of 0.5%. Annual inflation also slowed to 3.3%, down from 4.0% in the previous quarter, which was below the central bank’s expectation of 3.6%.
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Disclaimer:
As markets digest these developments, the outlook for both the New Zealand and Australian dollars remains closely tied to upcoming monetary policy decisions and global economic trends. Risk management is advised for traders.
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