Jul
07

New Zealand Rate-Cut Bets Pared After RBNZ Warns on Housing

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  • Odds on Aug. 11 rate reduction drop to less than 50 percent
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Traders pared bets on a New Zealand interest-rate cut next month after the central bank said further reductions could pose a risk to financial stability by throwing fuel on an overheated housing market.

The odds of an Aug. 11 cut in the official cash rate dropped to 40 percent in Wellington Friday from as much as 70 percent earlier this week. That follows comments from Reserve Bank of New Zealand Deputy Governor Grant Spencer late Thursday that the bank needs to carefully consider risks to financial stability when deciding the future path of monetary policy…

New Zealand Rate-Cut Bets Pared After RBNZ Warns on Housing

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