Lates News

Hirofumi Suzuki, Chief FX Strategist at Sumitomo Mitsui Banking Corporation's Tokyo Branch, said the RBNZ's decision to hold rates steady was unexpected. The recent rise in long-term yields and the decline in stock prices have tightened New Zealand's financial conditions, which likely tipped what was originally a close call toward keeping rates unchanged. Nevertheless, given that the RBA and other major central banks have maintained hawkish stances, the RBNZ has no choice but to retain a hawkish bias. The RBNZ is expected to continue raising rates cautiously, but the NZD may face greater downward pressure.