-
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 BRIEF: China Crude Oil Imports Accelerate In November
MNI BRIEF: RBA Holds, Notes Declining Inflation Risk
MNI: PBOC Net Injects CNY90.3 Bln via OMO Tuesday
MNI STATE OF PLAY: RBNZ Toughens Up In A Hotter Than Expected Economy
The Reserve Bank of New Zealand marked a significant change toward a tighter policy outlook in ending its quantitative easing programme in the face of an economy running hotter than expected, particularly in the housing market.
The RBNZ's Monetary Policy Committee on Wednesday put a deadline on its Large Scale Asset Purchase (LSAP) program, well short of the original NZD100 billion limit (USD69.9 billion). Around NZD60 billion of bonds were purchased under the program, which will end on July 23.
The central bank has maintained the Official Cash Rate at the record low 0.25%, and is continuing its Fund for Lending program which offers cheap funding to commercial banks.
LEAST REGRETS
In its statement, the RBNZ said that a "least regrets" policy now implied that the level of monetary support since mid-2020 "could be reduced sooner, so as to minimize the risk of not meeting its mandate," a comment which suggests the bank believes the economy is overheating and could overrun its inflation and employment targets.
The key mandates for the bank are for inflation to be within the 1% to 3% target range, and for there to be full employment in the economy.
Inflation is currently at 1.5% but is expected to surge in the second quarter to around 2.7%, the upper range of the RBNZ target. Unemployment is currently at 4.7%.
On inflation, the RBNZ said that it expected pressure to build "due to rising domestic capacity pressures and growing labour shortages."
HOT HOUSE PRICES, RATE HIKES
Regarding the housing market, which continues to climb despite a tightening in lending regulations and a withdrawal of incentives for investors, the bank said the "recent rate of growth in house prices remains unsustainable."
"Any future increases in mortgage rates will further dampen house price growth," the RBNZ statement said.
The bank's last Monetary Policy Statement, released in May, contained a track for the OCR with a 20 basis point rise in September 2022. But Wednesday's statement will only add to speculation of an earlier rate hike, given that rates are now the "preferred tool" for monetary policy.
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.