Monetary policy and the Australian-Kiwi exchange rate: RBNZ paper
Changes in the Australian and Kiwi dollar exchange rate have become more sensitive to the short-term interest differential, research published Sunday by the Reserve Bank of New Zealand finds.
The change in the behaviour of the exchange rate was triggered by the Kiwi central bank's adoption of the official cash rate regime in March 1999, according to Alfred Guender and Bevan Cook, the paper's authors. "Since then, exchange rate changes and the interest differential have been positively correlated
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