The New Zealand dollar had a difficult week after the Reserve Bank of New Zealand made the surprise decision to keep interest rates at a record low for much longer than even the most pessimistic analysts had predicted. 

Unfortunately the governor’s positive caveat about New Zealand’s economy and its optimistic inflation outlook did nothing to help the Kiwi. The decision suggested to analysts that the forecast for an interest rate rise was being pushed from the end of 2019 into 2020 which unnerved investors. The New Zealand dollar plummeted 0.58% against the US dollar after the dovish decision was revealed.