-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Global Macro Weekly -
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessMNI RBNZ STATE OF PLAY: Minor Tweaks Hint At Growth Risk
--Moderates Language on Exchange Rate
--No Longer Characterizes Population Growth as "Strong"
By Sophia Rodrigues
SYDNEY (MNI) - The Reserve Bank of New Zealand left the official cash rate
unchanged at 1.75% Thursday and made small tweaks in the statement that pointed
to growth risks growing forward but also slightly moderated its language on the
exchange rate.
In his first OCR statement since taking over as Acting Governor on Tuesday,
Grant Spencer maintained the central bank's policy outlook: "Monetary policy
will remain accommodative for a considerable period. Numerous uncertainties
remain and policy may need to adjust accordingly."
Spencer will serve in an interim capacity for six months while a new
governor is chosen to replace Graeme Wheeler, whose five-year term ended
Tuesday.
The RBNZ said second quarter GDP grew in line with expectations but
construction was weaker than expected.
Weaker construction, if sustained, could have bigger implications for
monetary policy given it is expected to be a major contributor to non-tradable
inflation and also to growth.
The RBNZ also no longer characterized future population growth as "strong,"
another important factor for future monetary policy. Immigration could be
adversely affected by the policies of whoever forms the next government. In his
final speech, ex-governor Wheeler said a sharp decline in net immigration would
be a key domestic risk for the economy.
The RBNZ said growth is projected to maintain its current pace going
forward, supported by accommodative monetary policy, population growth, elevated
terms of trade, and fiscal stimulus. But this language provided no direct hint
on whether there has been any downgrade in the outlook. This will be clear at
the next decision on November 9, which will be accompanied by a full update of
the central bank's outlook for the economy.
On the exchange rate, the RBNZ acknowledged that the trade-weighted
exchange rate has eased slightly since the August statement but said a lower New
Zealand dollar "would help" to increase tradables inflation and deliver more
balanced growth.
This is slightly more moderate language to the previous statement, when the
RNNZ said a lower New Zealand dollar "is needed" to increase tradables
inflation.
There was a small tweak in the commentary on inflation, with the RBNZ
replacing the line "the outlook for tradables inflation remains weak" with a
reference to "volatility in tradables inflation." This might suggest a very
minor upgrade in the inflation outlook, though much will depend on how the
exchange rate performs in the months ahead.
As expected, there were no changes in the commentary on global growth and
inflation, or on the local housing market.
[TOPICS: MT$$$$,MX$$$$]
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.