RBNZ monetary policy statement due today - NZD scenarios

Author: Eamonn Sheridan | Category: Central Banks

The Reserve Bank of New Zealand policy announcement is due at 0100GMT on Wednesday 24 February 2021, earlier previews here:

Westpac have outlined their scenarios, this a snippet from their piece:

We expect ... all policy settings unchanged, which is widely expected. 
  • Markets will look for hints in the narrative
A dovish scenario (25% chance ...) would comprise a signal that the current degree of accommodation is likely to be maintained for a long time. 
  • NZD/USD would fall by 0.5c.
A hawkish scenario (25% chance) would comprise hints on QE tapering (Westpac expects the LSAP programme to be reduced at the August meeting). 
  • NZD/USD would rise by 1c.

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