Central Banks


Further comments by RBNZ’s governor Adrian Orr

  • Exchange rate has followed terms of trade
  • Realisation that central bank is to retain policy stance is filtering through to markets and that is pushing NZD lower
  • Core inflation has been slow to respond to low rates
  • Core inflation is a bit below where the central bank would like it to be
  • In no rush to move rate in either direction
  • Seems that “our message on rates is getting through”

Maintaining policy stance is one thing, but I believe the statement earlier (which opens up the possibility of a rate cut) is providing the market with a fresh rethink of the RBNZ’s future move in rates.

I still believe the next move will be a rate hike, and the RBNZ’s message earlier is mainly just trying to tone down expectations for that – so as to not pressure themselves into a specific time to do so.



Source link

Articles You May Like

Key economic releases for Feb 18-22 week
Mixed data today and a bunch of chop
Forex Strategy That ALWAYS WINS (Works 100%)
One more increase for 2019 is my projection
USDJPY tests 111.00/trend line

Leave a Reply

Your email address will not be published. Required fields are marked *