Market news
29.11.2021, 03:17

RBNZ's Ha: New variant is unlikely to halt the bank rate rises

Reserve Bank of New Zealand (RBNZ) Chief Economist Yuong Ha said in a Wall Street Journal (WSJ) interview on Monday, the new Omicron covid strain is unlikely to alter the central bank’s rate hike plans.

Key quotes

“RBNZ would have raised the cash rate even if Omicron had become known before the central bank's policy statement.”

“The situation now is different from August, when the RBNZ had delayed a rate increase due to a Delta variant outbreak that followed months of zero COVID-19 cases.” 

"The difference is we are now transitioning into a new Covid protection framework.”

"What that means is we are getting used to the idea of living with Covid, so Omicron, I don't think it changes the outlook, it probably just reinforces the downside risks we saw in the projections.”

"If Omicron turns out to be a massive game-changer, that might be kind of like August where we just took a pause.”

 “The Omicron COVID-19 variant would need to have a dramatic economic impact to deter the Reserve Bank of New Zealand from continuing to raise interest rates.”

Market reaction

NZD/USD fails to benefit from these comments, as it trades modestly flat around 0.6830, at the press time.

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location