Forex Trading News – New Zealand interest rate decision

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The Reserve Bank of New Zealand held its interest rate at 2.5%, as it was widely expected. However RBNZ delegates have stated that the Bank is monitoring closely the performance of the domestic economy, which he mentioned is doing better than expected and that may push the authorities to proceed to a rate hike. The last change on the key interest rate took place on March, where RBNZ cut it by 50 basis points to reinforce the economy after the destructive quake in Christchurch. There is a mixed sentiment in the market on the timing of the central bank of New Zealand concerning a possible hike, as some investors expected a change on early Fall while some others bet for a hike at the end of the present year. At the time of the announcement of the decision the Kiwi was traded nervously as it spiked to 0.8723 within a minute, before retreating in less than five minutes to a low of 0.8676. Currently the NZDUSD pair is trading at 0.8714, close to the post floating era high of 0.8765, achieved on Wednesday London trading hours.