Corporate foreign exchange news
Traders look to New Zealand after RBA holds
Tuesday, 01 September 2009 09:59:30 GMT

Forex traders were this morning (September 1st) anticipating a dovish announcement from the Reserve Bank of New Zealand (RBNZ), following the decision by the Reserve Bank of Australia (RBA) to keep rates on hold at three per cent.Speaking to Reuters, Imre Speizer, markets strategist at Westpac Bank, commented: "There is really little pressure on the RBNZ to do anything hawkish. No pressure on them to change anything from their previous statement."Reacting to the announcement from the RBA this morning, short-term interest rate swaps dropped sharply, while bill and interbank futures both rose after the statement from the bank's governor Glenn Stevens.In the wake of the financial crisis, the RBA cut interest rates by 425 points, last moving on interest rates in April, when it cut 25 points off the base rate.Many analysts are now anticipating that the Bank could announce a rise by the end of the year.

