Wednesday, March 5, 2008

New Zealand dollar steady

The New Zealand dollar held steady today, ahead of the Reserve Bank's quarterly monetary policy statement due tomorrow morning.

At 5pm, the kiwi was buying US79.84c, compared with US80.45c at 5pm yesterday. Against the aussie, the New Zealand dollar was on A86.08c (A86.17c yesterday).

All private-sector economists expect Reserve Bank governor Alan Bollard to leave the cash rate unchanged on 8.25 percent. As usual, the interest will be in the commentary and its tone.

Although the Reserve Bank of Australia decided yesterday to lift the cash rate across the Tasman 25 basis points to 7.25 percent, its accompanying statement was not as hawkish as expected.

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