Monday, June 11, 2007

I cannot say how much dread and foreboding this incites

For your information the Reserve Bank released this news release a short
time ago

News release

11 June 2007, 3.45pm


Reserve Bank confirms forex intervention


The Reserve Bank confirmed it has intervened today in the foreign
exchange market to sell New Zealand dollars.

Reserve Bank Governor Alan Bollard said: "As stated in our June
Monetary Policy Statement, we regard current levels of the exchange rate
as exceptional and unjustified in terms of the economic fundamentals.

"This action does not prejudge the future direction of monetary policy,
which as always will remain dependent on emerging economic trends.

"The action is consistent with clause 4(b) of the Policy Targets
Agreement, which requires monetary policy to avoid unnecessary
instability in the exchange rate."



For further information contact:
Mike Hannah
Head of Communications
Ph 04 4713671, 021 497418, mike.hannah@rbnz.govt.nz

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