This is the unscheduled economic outlook update from the Reserve Bank of New Zealand . They announced it was coming last week and it has been driving NZD lower ever since (bonus or cunning plan?)
- A decline in the exchange rate is needed
- Monetary policy will continue to be accommodative
- Long-term inflation expectations are well anchored
- NZ dollar rate is holding down tradable good inflation, currency markets makes it difficult to meet inflation objective
- More easing likely needed to return inflation to target
- Many uncertainties around the outlook
Quick Headlines via Bloomberg, and the full report from the bank is here
more to come
The NZD dropped immediately but is running onto some profit-taking now. The currency started falling about a week ago when this update was announced as coming today. There was loads of selling ahead of the statement and its this we are seeing being squared for profits a little now. Looks like a 'gap fill' might be coming up.
