It was a busy day for New Zealand yesterday, strengthening in anticipation of the official cash rate and Rate statement; but, fell after the release. The cash rate was cut from 3.00% to 2.75% as the New Zealand central bank reverses the ambitious rise in rates over the last year. The central bank highlighted that further rate cuts will be data dependent and now some commentators expect rates to be cut further next month again until it return to the 2.5% figure last seen in October 2013.
Elsewhere, the Canadian dollar rallied as central bank voted to keep interest rates on hold at 0.5%, whilst building permits beat expectations, but, still edged down by 0.6% in July.
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