RBNZ act pretty much as expected

For those who missed it earlier, the RBNZ kept New Zealand interest rates unchanged at 2.5% and reiterated their intention to start removing monetary stimulus later this year. Many AUD/NZD longs, which had squared up in the last few days, have now started to reinstate.

Governor Alan Bollard is now being quoted across the newswires. He says that the NZD level is not of any concern, it’s still a USD story. They can afford to wait-and-see before raising rates and they probably will not need to raise as high as in the prevous cycle.