The Monetary Policy Committee agreed to retain the current stimulatory level of monetary settings, keeping the Official Cash Rate (OCR) at 0.25 per cent for now. Today’s decision was made in the context of the Government’s imposition of Level 4 COVID restrictions on activity across New Zealand. The Committee will assess the inflation and employment outlook on an ongoing basis, with a view to continue to reduce the level of monetary stimulus over time so as to best meet their policy remit. This follows the recent halting of additional government bond purchases under the Large Scale Asset Purchase (LSAP) programme in ... (full story)

NZD/USD extends the heaviest fall since June after the RBNZ Interest Rate Decision. RBNZ policymakers left benchmark interest rate unchanged but stay ready for a rate hike. Market sentiment dwindles amid virus woes, Fed tapering concerns, NZ reports six new covid cases linked to the first one. US dollar pullback awaits FOMC minutes for clearer direction, risk catalysts, Orr's presser are important too. NZD/USD takes offers around 0.6875, the lowest level in 2021, after the Reserve Bank of New Zealand (RBNZ) disappointed global markets with no rate change during early Wednesday. In its latest moves, the RBNZ kept the ... (full story)