The decision on interest rates depends mainly on the growth outlook and inflation. The main goal of the central bank is to achieve price stability. High interest rates attract foreigners who are looking for the best option of “risk-free” incomes, which can sharply increase the demand for the country’s currency. High values of the rate strengthen NZD, while rates below the expected level put pressure on NZD. The rate is expected to remain unchanged at 1.50%.
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