New Zealand's money markets price out prospects of negative rates


With the Reserve Bank of New Zealand offering an upbeat view of the economy, the country's money markets are pricing out prospects of the Reserve Bank of New Zealand pushing rates to sub-zero levels in 2021. 

The central bank's governor Adrian Orr was out on the wires soon before press time, stating that the economy has been more resilient than previously expected and it is too early to tell whether the negative interest rate policy would be implemented. 

The central bank kept the benchmark interest rate unchanged at 0.25% early Wednesday but boosted the large scale asset purchase program by NZ$ 100 billion. 

NZD/USD is now trading at 20-month highs above 0.6882.

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD: Upbeat China PMIs favor bulls near fresh three month high around 0.7400

AUD/USD remains positive after China’s activity data for November flashed welcome signs. November’s China NBS Manufacturing PMI, Aussie TD Securities Inflation flashed more than expected results. Market mood stays cautious optimistic amid vaccine hopes, Brexit jitters and Aussie-China tussle.

AUD/USD News

EUR/USD: Refreshes three-month high towards 1.2000, battles triangle resistance

EUR/USD eases from fresh high since September 01. The pair rose to the highest in three months before a few hours but couldn’t cross the upper line of a five-week-old ascending triangle formation. RSI conditions warrant caution, bears are less likely to take entries above 1.1870.

EUR/USD News

NZD/USD refreshes 2.5-year high on strong China PMI above 0.7400

NZD/USD rises to the fresh high since June 2018 after China data. China’s NBS Manufacturing PMI, Non-Manufacturing PMI beat market forecasts in November. ANZ Business Confidence, Activity Outlook also came in positive for November.

NZD/USD News

Gold: Trades below 200-day MA for first since March

Gold is trading below the widely-followed 200-day Simple Moving Average (SMA) for the first time since March. The metal is changing hands near $1,783 per ounce, representing a 0.25% loss on the day. 

Gold news

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex MAJORS

Cryptocurrencies

Signatures