Implications on Kiwi from BoE, Fed and RBNZ divergences? - ANZ
|Analysts at ANZ explained that the shift in tone at the BoE means things continue to hot up.
Key Quotes:
"At the last BoE meeting the vote was 5-3. Yesterday BoE chief economist Haldane implied he was erring towards a hike, and overnight, BoE MPC member Kristen Forbes said that there is “some urgency in tightening monetary policy... the longer (or greater amount by which) this trend rate of inflation moves away from target, the more difficult it will be to return to target”."
"The tone is changing, tally up the vote and it may be 5-3 the other way next time.
But when you consider the contrast between this tone (and recent Fedspeak) and the RBNZ’s relaxed stance, it is likely to have (downward) implications for the lofty NZD."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.