FX hong kong kiwi Markets

Of Kiwis And Protesters

A "most critical juncture".

All eyes will be on the US Wednesday as a bevy of headline events come calling, but there are at least two notables from abroad. The kiwi logged one of its best days in the last 12 months, surging some 1% against the greenback after the RBNZ unexpectedly held rates steady, against expectations for a cut. That sounds terribly boring, but it's actually quite interesting. RBNZ was among the first to the rate cut party during this mini-easing cycle and Wednesday's decision to stand pat and lean against the market is indicative of policymakers' inclination to take a wait-and-see approach to further easing. The Fed is essentially adopting a similar stance in the US. The bank did slash its forecasts for growth to 2.2% in the year through March 2020 (versus 2.7% previously) and indicated it stands ready to act, but the important bit is the message this sends about how policymakers plan to approach things going forward. The RBA stood pat recently as well. "Economic developments since the August Statement do not warrant a change to the already stimulatory monetary setting at this time", RBNZ said, adding that "we expect economic growth to remain subdued over the remainder of the calenda
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1 comment on “Of Kiwis And Protesters

  1. George says:

    A couple of thoughts here: We are in a boring news cycle of overcooked potential events currently…That said , the undertone is that of a big stakes chess game . The tone is terribly ideological and the Huawei episode and the Hong Kong events all indicate the gloves are still on and the phony smiles are still on the faces. Not to be fooled we should expect….well….. almost anything.!! Tough job for you, H…… and others as well, to get context in this .

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