| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 01:00 | New Zealand | RBNZ Interest Rate Decision | | 5.25% | 4.75% | 4.75% |
| 06:00 | Germany | Trade Balance (s.a.), bln | August | 16.9 | 18.9 | 22.5 |
NZD weakened against other major currencies in the European session on Wednesday as investors continued to react to the Reserve Bank of New Zealand's decision to cut its benchmark policy rate by an outsized 50 basis points and signals of further policy easing.
The RBNZ said that its policymakers consider today’s decision as appropriate “to achieve and maintain low and stable inflation while seeking to avoid unnecessary instability in output, employment, interest rates, and the exchange rate”. Moreover, they see the newly approved level of the official cash rate (OCR) of 4.75% as “still restrictive”, which “leaves monetary policy well-placed to deal with any near-term surprises.”
In addition, New Zealand's central bank highlighted that its policymakers believe that “the economic environment provided scope to further ease the level of monetary policy restrictiveness.”
RBNZ’s latest policy statements reinforced bets that more interest rate decreases are to come in the coming months.