The decision on the interest rates depends mainly on the growth and inflation prospects. The main goal of the Central Bank is to achieve price stability. High interest rates attract foreigners who are looking for the best “risk-free” income for their own money, which can dramatically increase the demand for the country’s currency. Interest rates higher than expected strengthen NZD, while indicators below expected ones put pressure on the national currency. The rate is expected to be decreased from 1.75% to 1.50%.
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