Market Focus

On Wednesday, November 8, 2017, the most important news is the Reserve Bank of New Zealand’s interest rate decision.

According to the forecast, the RBNZ will keep the interest rate at 1.75%. This decision is due to the fact that further lowering of the discount rate carries the risk of overheating in the real estate sector of New Zealand. As it will increase the growth of house prices. The increase in the discount rate is also too early to consider, since the overall level of inflation in New Zealand is below the target level of 2.0% and requires a further soft policy from the RBNZ.

Market participants will closely follow the statements made by the RBNZ and its forecasts of interest rate changes. In case there are hints about a possible rate increase in 2018, the New Zealand dollar will receive significant support and one should expect its growth in the range of 70-80 points against the main competitors.

Alexander Sivtsov