The Reserve Bank of New Zealand decided not to raise interest rates, and left it at the level of 3.50%. We recall that this year the interest rate rose by 1.0%, but the deterioration of the economic situation in the country worsened expectations of analysts and the central bank has decided to observe the economic situation in the country.
It is worth noting that the RBNZ announced on overvaluation of the national currency. Reduction in the New Zealand dollar due to a decline in prices for dairy products by 45% compared to the maximum level in February. Growth in previous periods was caused by inflow of emigrants, the construction boom after the earthquake. We expect a further fall in the price of New Zealand dollar mainly due to the fall in prices of agricultural products and the growth of the trade deficit of the country.