Market ‘perfectly priced’ for placeholder monetary review

Kiwi Bank chief economist Jarrod Kerr said interest rate markets are perfectly priced for the central bank’s predictable ‘least regrets’ approach.

“Today’s ‘review’ was nothing more than a stepping-stone ahead of the full May statement,” he said in a note.

Even so, currency traders reacted positively to the RBNZ’s short statement, pushing the kiwi dollar up from 70.50 US cents to 70.87 cents, at 5pm in Wellington. 

The yield on a 10-year government bond was at 1.7%, similar to where it has been throughout the past month. The two-year yield was also little changed at 0.26%.