If you missed the Reserve Bank of New Zealand news items yesterday, here they are:
In order:
- RBNZ leaves cash rate unchanged, boosts asset purchase program
- NZD drops on the RBNZ policy announcement
- RBNZ Gov Orr says NZ dollar appreciation has moderated returns for exporters
- Responses to the RBNZ coming in - "hard to imagine a more dovish set of policies"
Of particular note, to me, were, of course, the boost to LSAP but also the favourable comments of eventual negative rates and also Orr emphasising the high NZD was damaging.
I spotted a snippet from NAB on the NZD along the same lines:
- RBNZ "clearly stating a bias to push NZD lower"
- "a clear dovish tilt which opens the door to more unorthodox easing in coming months"
A quick glance at your charts though will show NZD higher, along with other FX. Its beholden to events offshore right now, as we have become accustomed to.
RBZ Gov Orr
