The NZD/MYR currency pair hovered above a 14 1/2-year low of 2.3096 on Tuesday ahead of the outcome of the RBNZ’s policy meeting on November 26th.
The Reserve Bank of New Zealand is expected to reduce its official cash rate by 25 basis points to 2.25% at its November meeting.
In October, the RBNZ delivered an out-sized 50 bps rate cut to 2.5%, citing prolonged spare capacity, subdued domestic activity and downside risks from cautious household and business behavior, which could hinder the country’s economic recovery.
The central bank also highlighted that inflation had remained near the top of the 1%–3% target band, but it would likely return to the 2% mid-point by mid-2026.
Policy makers said they remained open to further easing in order to anchor inflation near the 2% objective.
Meanwhile, MYR traders will also look to Malaysia’s producer price data for October for more cues on inflationary pressure.
The NZD/MYR currency pair was last down 0.34% on the day to trade at 2.3156.
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