Expectations of a 50bp rate hike from the Reserve Bank of New Zealand have fallen after remarks from Assistant Governor Hawkesy earlier in the session
In the RBNZ piece accompanying his speech (link here) there is this:
- In the world of setting monetary policy, this translates to having confidence in the outlook for the economy, and inching in the right direction based on how the economy is likely to evolve. This is consistent with the observation that when there is a typical amount of uncertainty, and the risks are evenly balanced, then central banks globally tend to follow a smoothed path and keep their policy rate unchanged or move in 25 basis point increments.
Thus the dropping away in 50bp hike expectations.
There has not been a lot of kiwi $ movement, its down a few points on the session through:
