The New Zealand Dollar continues rising. Overview for 11.11.2020

NZDUSD is rising on Wednesday and updating the highs of March 2019.

The Kiwi responded positively to the RBNZ’s decisions and intends to keep its positive momentum against the USD. The current quote for the instrument is 0.6880.

The Reserve Bank of New Zealand decided to keep its benchmark rate intact at the all-time low 0.25%, just as expected. At the same time, the regulator introduced a new monetary mechanism intended to reduce loan interests without revising the rate itself. 

Moreover, the RBNZ hinted at its readiness to cut the rate and even make it negative if the country’s economy required. 

The country’s central bank is still focused on improving inflation and the unemployment rate. These are exactly the areas where new stimulus will be applied to. The regulator’s program called FLP is supposed to start in December and believed to help reduce financing costs for banks and interest rates in the real sector of the economy. 

There were some doubts that the New Zealand regulator would keep the rate unchanged after the RBA had decreased it. However, the RBNZ decided to try all possible monetary tools and turn to the rate in the latter time, in case they didn’t work.