New Zealand to Hold Rates in a Week of Dovish Central Bank Signals

  • Monday, March 25, 2019

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The Most Important Central Bank Releases This Week
central bank communications analytics research

The only G-10 currency central bank holding a policy meeting this week is the Reserve Bank of New Zealand, which is likely to hold rates in light of better than expected Q4 data. This glint of optimism is shared by the bank’s Aussie counterparts, who have shifted from very dovish toward neutral in recent weeks.

Elsewhere, policymakers have struck a more dovish tone. The Fed’s dovish turn at last week’s FOMC meeting is likely to be reflected in this week’s policymaker speeches. Similarly, speeches by ECB policymakers are likely to acknowledge that ongoing economic weakness may prompt further stimulus. The Summary of Opinions from the BOJ is likely to sound dovish, as is the lone scheduled policymaker speech from the Riksbank. Perhaps the most interesting market mover of the week could be the SNB, which will release its Balance of Payments information, potentially revealing currency market intervention designed to prevent CHF strength amid soft inflation and weakening global growth.

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