The NZD/NOK currency pair settled below recent high of 6.1075, its strongest level since May 20th, in the wake of the RBNZ’s policy decision.
The Reserve Bank of New Zealand cut its official cash rate by 25 basis points to 3.25% at its May meeting, in line with market consensus.
This way, borrowing costs were brought to their lowest level since August 2022. The rate adjustment came with signals that a more extensive monetary easing cycle may unfold.
The RBNZ monetary policy committee cited elevated commodity prices and easing interest rates as supportive forces for New Zealand’s economic momentum. Despite this, the central bank flagged risks ahead that could hamper recovery.
RBNZ Governor Christian Hawkesby stated that both tariffs and heightened policy uncertainty abroad were anticipated to temper New Zealand’s economic recovery and diminish medium-term inflationary pressures.
The NZD/NOK currency pair settled 0.75% higher at 6.0914 on Friday.
The exotic Forex pair gained 0.68% for the week.
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