NZ FinMin Robertson: No assumptions on what RBNZ will do

Dhwani Mehta FXStreet

“No assumptions on what the Reserve Bank of New Zealand (RBNZ) will do,” New Zealand's Deputy Prime Minister and Finance Minister Grant Robertson said in his statement on Wednesday.

Additional quotes

“The economy is in good shape.”

“Have budgetary room to cope with what we observe.”

This comes after the RBNZ stayed put on the OCR, by keeping it at a record low of 0.25% in August. Despite the rates on-hold decision, the central maintained a hawkish tone, by saying that it remains on track to ease monetary policy support sooner than other countries.

Market reaction

NZD/USD consolidates its bounce from nine-month lows below 0.6950, digesting the kiwi central bank’s guidance on the monetary policy normalization amid rising covid count in New Zealand.

The pair is now trading at 0.6931, still up 0.12% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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