Futures Market News
Rate cut remains option, New Zealand bank official says
Mar 09, 2012 11:44 AM
The governor of the Bank of New Zealand is keeping the option of an interest rate cut as an option but said the matter hasn't fallen under serious consideration, Bloomberg reports.
Alan Bollard said "it's completely a possibility" on Friday during an interview with a New Zealand television station. He said the possibility would fall under more serious consideration should the Kiwi continue gaining against its counterpart currencies.
"It is worth us pointing out to the financial markets that betting on the New Zealand dollar's strength is not a sure thing," Bollard told the news source.
The past year has seen the New Zealand dollar rise about 12 percent and Bollard said those figures do not benefit economic development and growth. Exports are reduced and the possibility of additional rate increases slip.
The Kiwi gained in value from Thursday to Friday as circumstances became rosier in Greece, according to The New Zealand Herald. The Aegean nation finalized a debt-swap deal and appears to be set to secure a second tranche of international bailout aid since June 2010.
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