The New Zealand dollar was climbing on Thursday against the world’s reserve currency after the Bank of New Zealand hiked interest rates for the third time this year, according to Bloomberg.
The kiwi rose at least 1 percent against all 31 of its major rivals after Governor Graeme Wheeler with the Reserve Bank of New Zealand noted the importance of reining in inflation. Policy makers pushed up borrowing costs to 3.25 percent.
“The kiwi has had a big spike against the US dollar,” senior advisor Stuart Ive with OMF told The New Zealand Herald on Thursday. “The market was expecting Wheeler to be slightly more dovish on his approach and maybe even reduce the bank bill track significantly and that basically didn’t happen. That makes it very clear from Wheeler that we are going to continue raising rates on the current track that we are on until he believes that we are in a more neutral stance given inflation.”
The New Zealand dollar climbed about 1.4 percent against the greenback on Thursday.
The central bank is likely to continue pushing up borrowing costs as the year continues, according to The New Zealand Herald.
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