The New Zealand dollar’s published reference fix rose on Oct. 20 while China left its main lending rates unchanged, with New Zealand inflation figures due before its next policy decision.
The Reserve Bank of New Zealand published an Oct. 20 reference fix of $0.56645 per New Zealand dollar, up from the Oct. 19 fix of $0.56565. Taken at 9 p.m. ET on Oct. 19 (01:00 UTC on Oct. 20), the benchmark corresponds to 2 p.m. New Zealand daylight time. It is a timed snapshot, not an intraday trading high.
China’s longer-term loan prime rate remained at 3.50%, while its one-year benchmark stayed at 3.00%. The National Interbank Funding Center, which publishes the rates with authorization from the People’s Bank of China, released the figures Oct. 20. Both rates matched September’s levels.
The rates are based on bank quotations and serve as lending references. China is New Zealand’s largest trading partner, according to New Zealand’s Ministry of Foreign Affairs and Trade.
Stats NZ is due to release the September-quarter consumer price index Oct. 22. Consumer prices rose 4.1% in the year through June and 1.5% during that quarter. The annual rate exceeded the Reserve Bank’s 1% to 3% medium-term target; the bank forecasts 3.9% annual inflation for the September quarter.
At its Sept. 2 meeting, the Reserve Bank lifted the official cash rate by a quarter percentage point, to 2.75%. It has said higher wholesale interest rates passed through to mortgage and business lending rates, while term-deposit rates rose less. The bank’s next rate decision is scheduled for Oct. 28.
