Wheeler Omits Nine Words to Cast Doubt on RBNZ Rate Increases
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New Zealand central bank Governor Graeme Wheeler has cast doubt on future interest-rate increases and sent the currency to a three-week low by omitting nine key words in his latest statement.
In announcing that the official cash rate will stay at 3.5 percent, Wheeler removed the phrase “we expect some further policy tightening will be necessary”, which he had included in his prior statement. New Zealand’s dollar fell as low as 77.70 U.S. cents, its weakest since Oct. 6.