11.08.2016 - RBNZ lowered the interest rate to 2.0%

The Reserve Bank of New Zealand decided to lower the key interest rate by 0.25% to 2.00%. It is worth mentioning that earlier the Reserve Bank of Australia also lowered the interest rate. The reason for such steps was a slowdown in the world economy, the negative situation on the commodity markets, as well as low inflation. It is worth noting that a number of experts had expected a rate cut by 0.50%, but the country's central bank decided to conduct moderate softening due to rising prices in the housing market in New Zealand, which creates risks for the financial system. According to our estimates, the New Zealand regulator may continue easing monetary policy, which will lead to the fall of the local currency. Our medium-term outlook remains negative with a potential reduction by 5-7% in the near future.

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.