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

EUR/USD GBP/JPY trade Best Forex Trading System 13 AUG 2018 Review -forex trading systems that work
Best Forex Trading Training In Tamil
10 years of the things we’ve learned at ForexLive
The NZDUSD also stalls at the 100 hour MA on the dip today
China July FDI data adds to positive tones in the market

Leave a Reply

Your email address will not be published.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