Key quotes
“Called for the bank’s immediate sale of some NZD50 billion bonds bought as part of Quantitative Easing’s recent pandemic program.”
“Been pushing the RBNZ tightening policy for about 18 months and that he considered current policy settings “ludicrous.”
It is absurd to think of unemployment as 3.2% with 6 % inflation. If they raise rates 25 basis points, then the Official Cash rate will be at 1.
“25 basis points next Wednesday is too little, too late”
“They should make a big move right now, like 75 basis points and then another 50 or 50 and then another 50 and so on.”
“It was an “bizarre” situation that real interest rates were negative due to the economy overheating. However, house prices – which rose 27.4% last fiscal year according to CoreLogic research – are starting to cool.
Reaction of the market
Despite mixed market conditions, the kiwi currency is outperforming all G10 currencies in Asia trading so far this Thursday.
NZD/USD gained 0.39% during the day and traded at 0.6704 as of writing.
