(Bloomberg) -- New Zealand's dollar dropped for a third day on speculation economic growth is starting to slow, damping the prospect central bank Governor Alan Bollard will increase the benchmark interest rate again this year.
New Zealand's record 7.75 percent rate has helped boost the currency 16 percent in the past year. Bollard increased borrowing costs a quarter point in both March and April to curb consumer demand and subdue inflation. There is a 17 percent chance the rate will be raised at the bank's June 7 meeting, according to a Credit Suisse index based on overnight trading in interest-rate swaps.
Read more at Bloomberg Currencies News
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