Home NZD: The Likelihood Of Negative Rates By RBNZ Has Diminished – MUFG
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NZD: The Likelihood Of Negative Rates By RBNZ Has Diminished – MUFG

What is the outlook for NZD over the coming weeks?

Here is their view, courtesy of eFXdata:

MUFG Research discusses NZD outlook and maintains a constructive bias over the coming weeks.

Strong labour market provides more evidence of V-shaped recovery in   New Zealand…New Zealand’s success in containing the spread of COVID-19 is allowing their economy to recover more strongly. Real GDP had already exceeded the pre-pandemic peak at the end of Q3 well ahead of other major economies,” MUFG notes.

“Positive cyclical momentum is encouraging market participants to  continue scaling back expectations for further RBNZ easing.  The likelihood of negative rates being implemented has diminished. Overall, we continue to believe that the fundamental backdrop remains favourable for a stronger kiwi,” MUFG adds.

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Kenny Fisher

Kenny Fisher

Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.