NZ dollar surges after Reserve Bank leaves OCR at 2.25 per cent

  • The New Zealand dollar has jumped to a one-year high after the Reserve Bank left interest rates on hold.

In a closely watched decision, Reserve Bank governor Graeme Wheeler left the official cash rate at 2.25 per cent.

While this is a record low, economists were roughly split ahead of the meeting, with half expecting the benchmark rate to be cut to 2 per cent.

The kiwi dollar immediately jumped to close to US71c on the news. Trading at around US70.2c before the news, the dollar rose to US70.84c, with Wheeler giving little hint that a rate cut is likely in August.

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RB

MAARTEN HOLL/FAIRFAX NZ
The OCR remains at 2.25 per cent.

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