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Reuters reported that New Zealand’s central bank is in no hurry to remove economic stimulus and tighten monetary policy, assistant governor Christian Hawkesby said on Tuesday, adding that markets will inevitably have “false starts” as they try to get ahead.

“Markets are keen to get ahead of central banks but there will inevitably be false starts and that is why we are seeing some of the volatility in bond markets at the moment,” Hawkesby told Reuters in an interview.

“Our approach is to continually remind markets that we are going to be patient, and we are in no hurry to remove stimulus,” he added.

Market implications

The statements follow last week’s event whereby the Reserve Bank of New Zealand (RBNZ) held rates and explained that it would maintain easy policy settings for a prolonged period.

there was a boost in the kiwi when the RBNZ would also take house prices into consideration, raising the notion of a less dovish outlook in time to come. 

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