-
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
Commodities
Real-time insight of oil & gas markets
-
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 Chart Packs -
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 PREVIEW: RBNZ Seen On Hold; Await November Meet
The Reserve Bank of New Zealand is expected to leave official interest rates unchanged at a record low 0.25% for a sixth straight month when it meets Wednesday, with the Large Scale Asset Purchase program maintained at NZD 100 billion.
The decision comes after recent data showed that the NZ economy shrank by a record 12.2% in the second quarter due to the coronavirus lockdown, with the country entered recession for the first time in 11 years.
The decline in GDP, however, is expected to be short lived with a record increase in GDP forecast for the third quarter as many businesses re-opened and consumers return to a degree of normality, taking the pressure off of the central bank to extend their accomodative policy.
Adding to the sense that the RBNZ has time on its side, the Treasury has forecast that unemployment will hit a peak of 7.8% in 2020, well below previous forecasts of a 10% peak.
In August meeting, the RBNZ announced an increase in its Large Scale Asset Program of Government bond buying from NZD60 billion to NZD100 billion, expressing a preference" for a package of measures which could include negative official interest rates, adding that staff were preparing for its implementation based on the readiness of the financial system.
NEGATIVE RATES
RBNZ Governor Adrian Orr did not commit the bank to implement the negative rates program, saying it would be deployed "if deemed necessary."
Last month, RBNZ chief economist Yuong Ha said they continued to be in contact with commercial banks to prepare them for zero or negative interest rates by the end of the year, although he stressed the timing of any move was dependent on how the economy performed in the next quarter.
He said that while wholesale rates may be at zero or negative there was no expectation that retail rates would go as low "but there is room for them to fall (from current levels)," he said.
The August MPS said that "considerable monetary stimulus remains necessary to achieve our employment and inflation objectives," and despite brighter signs, that remains the case
The RBNZ usually times policy decisions to coincide with the MPS, and the next statement is due on November 11.
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.