1 month ago
FXCM
Rate Hike SlowdownIn its last meeting all the way back in November, the Reserve Bank of New Zealand had raised rates by a record 0.75%. The central bank judged that fiscal policy is "more effective" at addressing the economic disruption of these extreme weather events, which "do not materially alter" the medium term monetary policy. Recession on the HorizonIn spite of this very aggressive monetary policy stance and the protracted period of rate hikes, the economy has proved very resilient so far. Headline Consumer Price Index (CPI) steadied at 7.2% y/y in the fourth quarter, but this is "too high" for the central bank . NZD/USD ReactionThe Reserve Bank of New Zealand is one of the most hawkish central banks, having started tightening before its major counterpart and months ahead of the US Fed.
Continue reading...
