NZD - RBNZ says rise in bank capital could lead to eventual rate cut

Reserve Bank of New Zealand says bank capital increase could lead to an eventual rate cut

NZD slammed on the headline

RBNZ is planning to hike capital requirements for banks over time.

• Says doing so may result in a marginal tightening in financial conditions
• hence may result in an eventual rate cut

Please note the hike proposals would phase in over 5 years for big banks, for smaller banks 7

ie. the NZD response is, IMO, quite overblown. Its not unusual for markets to respond in an overblown manner though, so this is not a criticism.

If you are interested in buying NZD this is probably presenting a bit of a snip.