Post by account_disabled on Mar 8, 2024 22:02:48 GMT -8
Life has become so fun that no one dreams of a better life anymore. The Reserve Bank of New Zealand's decision not to raise its key interest rate due to the country's only identified case of COVID-19 has roiled financial markets. Some thought it was funny and it made others cry. Adrian Orr and his colleagues were the main heroes of the week, even surpassing the Fed with their minutes from the July meeting. And who after that will say that you can't fight alone? Sooner or later, a person's life experience reaches such a level that it only makes work more difficult. Jacinda Ardern has prompted the introduction of three days of nationwide lockdown over the first case of coronavirus since February, citing dire consequences in countries that acted too slowly. The nationwide lockdown came a day before the RBNZ meeting, while an overwhelming majority of Bloomberg pundits expected the cash rate hike. The first among the G10 central banks. Kiwi grew steadily, but a single infected one clipped its wings.
LiteFinance: The Reserve Bank of New Zealand has taken the right path, but in the wrong direction The regulator was ready to pull the trigger, but COVID-19 appeared 24 hours earlier. A day after the meeting, Adrian Orr, speaking Paraguay Mobile Number List outside parliament, said the pandemic alone would not stop the Reserve Bank from raising rates. To delay this decision in October a significant impact on demand would have to occur. The RBNZ boss still sees the cash rate rising to a neutral level within 18 months. Such aggressive rhetoric leads us to wonder what happened on August 18. Was it fear? LiteFinance: The Reserve Bank of New Zealand has taken the right path, but in the wrong direction The Reserve Bank wanted to defy fate, but changed its mind. He attributed his passive attitude to the isolation of alert level 4. However, he noted that in the future he would reduce monetary stimuli to avoid uncontrolled inflation growth. If only Adrian Orr had known that the best defense against inflation was to absorb the money in time.
LiteFinance: The Reserve Bank of New Zealand has taken the right path, but in the wrong direction Panic and doubts among central bank hawks discourage kiwi bulls. The New Zealand dollar began to fall a day before the RBNZ meeting amid a lower probability of cash rate increase from 100% to 60%. Investors are tired of the stories. Is bad example contagious? So far, Jerome Powell says the Fed is keeping an eye on COVID-19, but the economy has already adapted. The Fed will hardly abandon monetary tightening due to the increase in the number of coronavirus cases. After all, QE has outlived its usefulness and the central bank needs to buy more time before raising rates. Furthermore, the epidemiological situation in the USA is not comparable to that of New Zealand, the scope is different. Therefore, the Reserve Bank's cowardice seems foolish. - It seems that for every ten fools there is one intelligent person. - Have you told yourself? On the other hand, the RBNZ set a precedent.
LiteFinance: The Reserve Bank of New Zealand has taken the right path, but in the wrong direction The regulator was ready to pull the trigger, but COVID-19 appeared 24 hours earlier. A day after the meeting, Adrian Orr, speaking Paraguay Mobile Number List outside parliament, said the pandemic alone would not stop the Reserve Bank from raising rates. To delay this decision in October a significant impact on demand would have to occur. The RBNZ boss still sees the cash rate rising to a neutral level within 18 months. Such aggressive rhetoric leads us to wonder what happened on August 18. Was it fear? LiteFinance: The Reserve Bank of New Zealand has taken the right path, but in the wrong direction The Reserve Bank wanted to defy fate, but changed its mind. He attributed his passive attitude to the isolation of alert level 4. However, he noted that in the future he would reduce monetary stimuli to avoid uncontrolled inflation growth. If only Adrian Orr had known that the best defense against inflation was to absorb the money in time.
LiteFinance: The Reserve Bank of New Zealand has taken the right path, but in the wrong direction Panic and doubts among central bank hawks discourage kiwi bulls. The New Zealand dollar began to fall a day before the RBNZ meeting amid a lower probability of cash rate increase from 100% to 60%. Investors are tired of the stories. Is bad example contagious? So far, Jerome Powell says the Fed is keeping an eye on COVID-19, but the economy has already adapted. The Fed will hardly abandon monetary tightening due to the increase in the number of coronavirus cases. After all, QE has outlived its usefulness and the central bank needs to buy more time before raising rates. Furthermore, the epidemiological situation in the USA is not comparable to that of New Zealand, the scope is different. Therefore, the Reserve Bank's cowardice seems foolish. - It seems that for every ten fools there is one intelligent person. - Have you told yourself? On the other hand, the RBNZ set a precedent.