Published at 00:15 (GMT) 13 Jan
Herald: RBNZ's efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications.
The RBNZ was the "stand-out central bank" of 2014 "after successfully using its macro-prudential powers to cool NZ's housing market, while becoming the first advanced economy central bank to raise interest rates in the current cycle," CBP chair Christopher Jeffrey said in a statement issued overnight in London.
RBNZ Gov Graeme Wheeler described the award as "humbling" and said 2015 would be a year of major challenges for central banks. "We are likely to see more quantitative easing than at any time since 2011, with associated exchange rate pressures," said Wheeler. "Markets will closely watch how central banks respond to falling oil prices, developments in the euro-zone, Russia and Greece, and the implications flowing from policy signals by the Federal Open Market Committee."
On FX, some focus on the award for RBNZ, with focus on RBNZ policies for 2015. A few houses think RBNZ will not hike OCR this year - and push rate hikes to 2016. Good to watch. NZD/USD at 0.7761-63, under pressure, as it hit lows of 0.7737 in NY, down sharply from 0.7840-50 in Asia on Monday. Bids now at 0.7720-30, offers at 0.7760-80 from funds. Interest to sell on rallies now.
AUD/NZD short-covering, now at 1.0495-00, putting pressure on Kiwi as well. Though AUD/USD under pressure as well, as it hit 0.8132, from 0.8245-50 - also down 1 big figure. AUD/NZD offers at 1.0530-50, bids now at 1.0450-60. WL
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