RBNZ Chief Economist: Not preparing banks for negative OCR at the moment

Ross J Burland FXStreet

The Reserve Bank of New Zealand's Chief Economist, Yuong Ha, explained that not preparing banks for negative OCR at the moment.

Key notes

Banks would need to be ready if OCR were taken lower.
Expanding QE is a decision for the MPC.

NZD/USD holding up

Analysts at ANZ Bank explained that the bird has "continued to drift as the USD has strengthened even in the face of appalling data – not that data is the focus at the moment."

NZ has a real shot at containing COVID-19 whereas it has gotten away in the US (and elsewhere), and our exports continue to hold up. That suggests Kiwi will hold up okay, even if it’s not a ‘risk on’ environment. Support is not far away and if broken, spells some exploration lower.

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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