RBNZ taking a dovish turn via Bloomberg
I have highlighted the dovish shift in the RBNZ rate statement below. It was this sentence that was squawked out and read which led to a quick reaction in the NZD. Check out Eamonn's wrap here for all the details.
Ok, as the dust begins to settle it looks like the RBNZ has seen the stormy waters in the world and decided to duck for cover, just in case. Brexit, Us-China trade war, Euro area slow down, Italian woes and, well the list goes on. New Zealand data hasn't been too bad Q4 growth picked up a little. manufacturing PMI is higher, domestic stock market is making new highs and the last rate statement had Governor Orr flatly rejecting rate-cut expectations.
The upshot of this is if some of those global risks recover, then the NZD will have an equally strong recovery.
