Reserve Bank of New Zealand (RBNZ) Deputy Governor Bascand was on the wires some minutes ago, via Reuters, throwing some fresh insights into Wednesday’s surprise rates on-hold decision by the central bank.
We made a call to “bide our time for now”, if we need to, we can move rates at Feb decision.
The significant amount of stimulus we’ve put in place is working its way through the economy.
Will take into account inflation data, labour data, bank capital review among other factors in next rates decision.
We don’t think the interest rate impact of our bank capital proposals would be extensive.
Has not made final decision on bank capital requirements, but “we’ve been clear capital is going up”.
The Kiwi is under pressure once again just below the 0.64 handle, partly sold-off into the Aussie’s downbeat Australian jobs data-led slump while the above comments also add to the weakness.