I’ve just seen this sort of thing doing the rounds …
The RBNZ said in the MPS that the “level of the TWI is expected to remain persistently elevated”, but seemingly contradict it by saying the exchange rate “remains unjustifiably and unsustainably high. We expect to see a further significant depreciation.”
That could very well be a fair point. maybe it’s a contradiction from the RBNZ … but on the other hand it goes to my comment earlier:
- Wheeler will be spewin’ (technical term … “spewing” – very upset) the NZD/USD has jumped. While NZD/USD has been declining the NZD against other currencies has not fallen nearly so much (yen excluded) due to the strength of the USD. The RBNZ needs NZD/USD (and the RBA need AUD/USD) to keep on falling so as to lower the currency against other currencies also.
