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Reserve Bank OCR Cut Anticipation Weighs on NZ Dollar Amid Middle East Tensions

Oct 07, 2024

The Reserve Bank of New Zealand (RBNZ) is widely expected to reduce the Official Cash Rate (OCR) by 50 basis points next week, contributing to the New Zealand dollar’s decline. At the time of writing, the NZD was trading at US62.16c, down 2% for the week. However, rising tensions in the Middle East have had a larger impact, as global investors seek safety in the US dollar. The US dollar index rose by 0.2%, reaching a six-week high. The OCR currently stands at 5.25%, with a potential cut signaling a shift in New Zealand’s monetary policy as international geopolitical uncertainty grows.

 

 

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