NZ reserve bank expected to keep interest rates unchanged

NEW YORK (Forex News Now) – The Reserve Bank of New Zealand is set to convene overnight to determine interest rates, in an event that could affect currency market trading.

Bank Governor Alan Bollard is expected to make no change to the rate of interest, which is currently at 3 percent.

The announcement will be made in the capital Wellington at 10:00 P.M., GMT on Wednesday; as such it is expected to affect Thursday trading.

Economists expect the next rate rise to come no earlier than March 2011, with many believing it will come in the second quarter of the year, according to reports from realtime forex news sites.

The Kiwi suffered heavy losses against the greenback on Wednesday on prospects that a US tax cut extension will spur an economic recovery there: NZD/USD traded at 0.7512 as of around 8:50 A.M., GMT, down 0.76% on the day.