RBNZ Chief Bollard: Strong Currency Not An Impediment To Rate Hike

(RTTNews) - The high value of the New Zealand dollar is not necessarily an impediment to raising the Official Cash Rate to quell rising house prices, Reserve Bank Governor Alan Bollard said Wednesday.

According to a report published in the Radio New Zealand Web site, Bollard told lawmakers that there is little the Reserve Bank can do to bring down the soaring value of the New Zealand dollar.

He said said the strength of the Kiwi against the U.S. dollar is due to that currency’s weakness.

Moreover, Bollard said money markets are already factoring in earlier rises in the cash rate and it was debatable whether or not this would push the dollar higher.

Yesterday, the country’s biggest fund manager said New Zealand’s central bank may need to raise its official cash rate in March to curb rising inflationary pressure

“The odds are building for an earlier tightening than the Reserve Bank of New Zealand is currently signaling,” Jason Wong, head of investment strategy at AMP Capital Investors said.

For comments and feedback: contact editorial@rttnews.com

Posted in Categories: Economy, New Zealand, Releases, USA.

If you like this article please...

Subscribe by RSS Subscribe by Email

Email This Post To A Friend

Commodities China Owns The Heavy Stone Has Gold Just Broken Out Of Its Trend Channel? The Dirty Little Secrets Of Warrants, Options & LEAPS Interesting Articles To Read The Forgotten Commodity - Rice Commodity Investing: ETFs Or Mutual Funds? John Paulson Launching A Gold Fund With $250M Of His Own Money Profit From The Falling Dollar With ETFs Wheat Playing Catch-Up As Commodities Rally Regulators And Commodity ETFs: Why They’re Evolving Read More »	Financials Financial ETFs Still Remain Vulnerable Ron Paul Thinks That Fed “Oversight Is Laughable” Buffett Borrows For Rail Acquisition Investment Ideas: Here Are 3 Dirt Cheap Stocks Treasury To Auction TARP Warrants Dear Reader, We Cannot Criticize Goldman Sachs. Instead, We Admire It 2010 Outlook For The US Banking Industry Get Rid Of Your General Electric Shares Tufts Endowment And Risk Taking? Regional Bank ETFs: The Bad And The Good Read More »	Exchange Traded Funds Biggest Gainer ETFs For The Week Ended 22 Nov What You Should Know About Precious Metals ETFs And Taxes Main Street Vs. Wall Street: Using ETFs To Capitalize Why You Should Watch This Leisure & Entertainment ETF Biotech Investing: Spread Your Risks With ETFs Are You Going For Yield With Your ETFs? Rydex Market Timers: At It Again Is An Asset Bubble Forming In Hong Kong’s ETF? Senior Secured Floating Rate Bonds: The Best Investments To Own When Interest Rates Rise Why Gold Will Surge To A Record $2,000 In 2010 Read More »
Stocks There Is A Considerable Gap Between What The Fed’s Saying And What It’s Thinking S&P 500 Flat Over The Week As Investors Reflect On Prices Versus Fundamentals Singapore Stock Market Update: Focus On Blue Chips I’ve Noticed A Profitable Pattern Stock Picks For Monday: Nanometrics, Melco Crown Entertainment, MetroPCS Communications And Cell Therapeutics S&P 500 Index Is Still Overvalued This Small Oil Exploration Company Is Ripe For A Takeover… Here’s How To Profit 3 Steps To Becoming A More Successful Trader The Transportation Sector: Here Are Three Investments In A Sector That Are Ready To Soar Stock Market Briefs: DR Horton, Dell, JM Smucker Read More »	Forex Alternatives To The US Dollar As The World’s Reserve Currency British Pound Retracing Friday’s Slide Against The US Dollar Month To Date Review Of The Market One Reason Why The US Dollar Might Rise Forex Wrap-up: A Massive Short-Covering Rally In The US Dollar May Just Be Starting Australian Dollar: Caution Canadian Dollar: Caution “Audit The Fed” Bill Moves Along USD/JPY Pushing Against The 100 Hour Moving Average At 89.11 Swiss Franc: The Downside Prevails Read More »	Economy The Economists Are Wrong Again What’s Triggering America’s Populist Rage? China Will Blow Up Before It Grows Up Contrary To Conventional Wisdom, When China Drops Its Currency Peg, The Immediate Benefits Will Flow To The Chinese, Not Americans Societe Generale Tells Investors How To Prepare For Potential “Global Collapse” Obama Commits To Free Trade Agreement With South Korea, But Auto Trade Remains An Obstacle Exponential Growth, Finite World The Message Of The 2-Year US Treasury Note, Deflation And Japan Why Investors Should Look To Japan Again Bond Sentiment: Treasury Yields May Drop Read More »