FXstreet.com (Barcelona) - RBNZ's Governor Alan Bollard said in his quarterly Monetary Policy Statement, As economic activity troughs, we expect the rapid easing of monetary policy to slow. Any future cuts will be much smaller than observed recently.
The Reserve Bank of New Zealand gave the economy a further boost Thursday, cutting the Official Cash Rate another 50 basis points to a record low 3.0%, but said it now expects the rapid easing of monetary policy to slow.
The New Zealand dollar strengthened after the rate decision, trading at US$0.5132 at 2147 GMT compared with US$0.5062 prior to the announcement. Bonds sold off, with yields rising between 5 and 8 basis points. Swap rates initially rose between 8 and 16 basis points before settling back to between 4 and 9 basis points higher.