New Zealand Treasury: RBNZ could cut OCR to minus 0.35% in a crisis

NZD lower onNew Zealand Treasury confirming RBNZ could cut OCR to minus 0.35% in a crisis.
AUD/NZD spikes to a high of 1.0512 and NZD/USD to a low of 0.6438.

Ross J Burland FXStreet

New Zealand Treasury has come out and confirmed that the Reserve Bank of New Zealand, (RBNZ), could cut OCR to minus 0.35% in a crisis. This follows a series of similar reports from various origins of late which have pressured the NZD lower, topped off by a surprise 50 basis point cut by the RBNZ) earlier this month.

Key notes:

Sees asset purchases as less appealing tool.

FX implications:

This has sens the NZD/USD lower on the session so far which is supporting AUD/NZD t a high of 1.0512.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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