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NZD

NZDUSD trades below the September low

DUTCH AUCTION RESULTS

New 0% Jan-29 DSL

BONDS

Tnotes, Gilt, Bund, spreads

FOREX

FX OPTION EXPIRY

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MPC was unanimous in keeping rates unchanged, but voted 7 - 1 on the asset purchase program. Saunders was the dissenter, preferring to "stop the current asset purchase programme as soon as practical".


On sequencing:

  • "The MPC intends to begin to reduce the stock of purchased assets, by ceasing to reinvest maturing assets, when Bank Rate has risen to 0.5% and if appropriate given the economic circumstances."
  • "The MPC will consider actively selling some of the stock of purchased assets only once Bank Rate has risen to at least 1%."

The 0.50% to stop reinvestments is likely in line with market thinking. But the 1.00% threshold to sell back to the market was not really expected to be committed to today.