FX.co ★ Kiwi Dollar Holds Near Four-Week High

The New Zealand dollar was trading at approximately $0.573, maintaining its position near a four-week high. This stability follows indications from the central bank that further interest rate cuts are unlikely. Although policymakers reduced rates as anticipated, their updated forecasts suggest only a 20% probability of another reduction next year. This outlook is due to a deceleration in inflation and improved economic growth prospects. These views echo the remarks from the Reserve Bank of New Zealand’s new governor, Anna Breman. She noted that recent rate cuts are expected to spur growth and boost employment. Breman also highlighted the importance of controlling inflation, particularly to restore purchasing power for low-income households. Investors are now anticipating the next policy change to be an interest rate hike, but not until late 2026. Additionally, the US dollar's proximity to a two-week low provides further support, influenced by expectations of a potential rate cut by the Federal Reserve in December.