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7/14/2021 2:14:01 AM GMT | By Anil Panchal
NZD/USD takes the bids to reverse the weekly losses on hawkish RBNZ.
RBNZ hints tapering by late July, keeps benchmark rate unchanged.
Halt in US Treasury yields probe DXY bulls amid a quiet session ahead of Fed’s Powell.
Covid headlines, US PPI also become important for fresh impulse.
NZD/USD shoots up to 0.7007, up 0.73% intraday around 0.7000 by the press time of early Wednesday after the Reserve Bank of New Zealand (RBNZ) portrays a hawkish tilt. Also favoring the quote could be the optimism of New Zealand PM amid the comparatively better covid conditions than other Asia-Pacific players.
The Monetary Policy Committee agreed to reduce the
current stimulatory level of monetary settings in order to
meet its consumer price and employment objectives over the
medium-term.
The Reserve Bank will halt additional
asset purchases under the Large Scale Asset Purchase (LSAP)
programme by 23 July 2021. The Committee will keep the
Official Cash Rate (OCR) at 0.25 percent and the Funding for
Lending Programme unchanged.
The global economic
outlook continues to improve, providing ongoing price
support for New Zealand’s export commodities. Global
monetary and fiscal settings remain at accommodative levels
supporting the recovery in economic activity. Rising
vaccination rates across many countries are providing
7/14/2021 12:53:24 AM GMT | By Anil Panchal
Early Wednesday at 02:00 GMT market sees the monetary policy decision by the Reserve Bank of New Zealand (RBNZ). Amid widely accepted chatters of New Zealand’s central bank’s rate hike in 2021, today’s monetary policy meeting becomes the key despite lacking the economic forecast announcements.
It’s worth noting that the RBNZ policymakers have been silent of late and the covid concerns are comparatively less severe than the other Pacific counterparts, making it suitable to be the first major central bank to offer a rate hike.
Even so, market consensus favors no change in the benchmark interest rate, currently at 0.25%, or the Large Scale Asset Purchases (LSAP) during today’s monetary policy meeting. The forward guidance, however, be edit the previous line saying, “current levels of stimulus will remain in place for a considerable time.”