Responses to the RBNZ statement - "surprised the market"

Author: Eamonn Sheridan | Category: Central Banks

A snippet from Westpac's assessment of the Reserve Bank of New Zealand  today.

RBNZ …  signalled it is unlikely to cut again unless the coronavirus pandemic impact becomes more severe than expected. 
  • That surprised the market which had expected an easing bias to be retained.
  • a hawkish shift from the guidance provided in November
  • effectively signalling the easing cycle is over. Indeed, it forecasts one hike by late 2021.
RBNZ cited fiscal policy very prominently as a reason for the change in monetary policy outlook

Next up is Governor Orr's press conference 

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose