The statement from January (today's) is on the left of screen, the statement from December is on the right.
Fat lot of good this is. :-D
If I made it a competition to 'spot the difference' it'd have to be easiest competition ever!
Anyway, a couple of key points:
This in December on the NZD
- The rise in the exchange rate is unhelpful and further depreciation would be appropriate in order to support sustainable growth.
Becomes this in January:
- A further depreciation in the exchange rate is appropriate given the ongoing weakness in export prices
More notably, this from December (bolding is mine to make it clearer):
- Monetary policy needs to be accommodative to help ensure that future average inflation settles near the middle of the target range. We expect to achieve this at current interest rate settings, although the Bank will reduce rates if circumstances warrant.
Becomes this in January, clearly signaling more cuts are on the way, or at least holding the door wide open:
- Monetary policy will continue to be accommodative. Some further policy easing may be required over the coming year
That's a much stronger signal, and has been viewed as a sell 'signal' in the NZD market.
Stops on long positions were taken out, Fonterra's earlier payout cut another weight on the NZD.
