RBNZ keeps OCR on hold at 1.75%

Felipe Erazo FXStreet

The Reserve Bank of New Zealand (RBNZ) said that it would leave the official cash rate unchanged at 1.75% in a decision that was widely expected, highlighting that numerous uncertainties remain and policy may need to adjust accordingly.

Key headlines (via Reuters):

Longer-term inflation expectations remain well-anchored at around 2 pct
Monetary policy will remain accommodative for a considerable period
Numerous uncertainties remain and policy may need to adjust accordingly
Longer-term inflation expectations remain well-anchored at around 2 pct
Expects future headline inflation to reach the midpoint of the target band over the medium term
Inflation rise mainly due to temporary factors may lead to some variability in headline inflation
House price inflation has moderated further, moderation projected to continue
There is risk of resurgence in house price inflation given the ongoing imbalance between supply and demand

Author

Felipe Erazo

FXStreet

Born in Colombia, Felipe Erazo is the American Session Manager at FXStreet. He has been studying journalism with a degree in social communication at the Universidad de Chile.

EUR/USD turns negative near 1.1850

EUR/USD has given up its earlier intraday gains on Thursday and is now struggling to hold above the 1.1850 area. The US Dollar is finding renewed support from a pick-up in risk aversion, while fresh market chatter suggesting Russia could be considering a return to the US Dollar system is also lending the Greenback an extra boost.

GBP/USD change course, nears 1.3600

GBP/USD gives away its daily gains and recedes toward the low-1.3600s on Thursday. Indeed, Cable now struggles to regain some upside traction on the back of the sudden bout of buying interest in the Greenback. In the meantime, investors continue to assess a string of underwhelming UK data releases released earlier in the day.