Home Markets RBNZ comments dampen market expectations of a big rate hike

RBNZ comments dampen market expectations of a big rate hike

0

Sept 21 (Reuters) – New Zealand’s central bank dampened expectations of a big interest rate hike when it meets next month, with comments on Tuesday that indicated it may take a more cautious approach.

The Reserve Bank of New Zealand (RBNZ) Assistant Governor Christian Hawkesby said in a speech that amid uncertainty, when the risks are evenly balanced, “central banks globally tend to follow a smoothed path and keep their policy rate unchanged or move in 25 basis point increments.”

The New Zealand dollar last traded 0.2% weaker at $0.7015, having touched a three-week low of $0.7000 earlier in the session in response to the RBNZ comments. One-year swap rates dropped to 1.07% from 1.15%.

The RBNZ is meeting on Oct. 6 to review its monetary policy settings. The bank held off raising the official cash rate (OCR) in August, despite inflationary pressures rising, after a new outbreak of the Delta variant of the coronavirus. read more

“The RBNZ stressed today…

Click here for full article…www.reuters.com