What to Expect? Reserve Bank of New Zealand’s Interest Decision!

August 8, 2017

Interest Rate Decisions from Major Central Bank RBNZ.


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What to Expect? Reserve Bank of New Zealand’s Interest Decision!

The Reserve bank of New Zealand’s interest rate decision.

The Reserve bank of New Zealand (RBNZ) board members will come together on Wednesday, August 9, to announce New Zealand’s interest rate decision.

This announcement will influence the New Zealand dollar, one of the world’s major currencies.

It is predicted that the central bank will hold interest rates steady at 1.75%.

Are you ready for the interest rate decision?

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What is an Interest Rate?

The RBNZ are gearing up to decide on whether to change the charge on overnight loans. When the actual outcome is better than the forecast, this is good for the New Zealand dollar.

Policymakers usually drop hints as to what the decision will be in the run-up to the announcement, in order to ease investors into the transition. Therefore, rate decisions are already priced into the market.

The rate itself is actually overshadowed by the statement made by the board members, which focuses on predictions for future rate increases.

How does the Interest Rate Affect Traders?

If the RBNZ statement is positive – if their rhetoric is ‘hawkish ’ – markets may move in accordance.

Interest rate decisions are paramount when considering the valuation of a currency – especially the Aussie dollar, which fluctuates much more than other major currencies.

Remember, It’s the statement that matters! If you are a currency trader, this will be particularly important to you.

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