Republicans Propose Scrapping Automatic Emergency Braking in Cars: Report

The post AUD/NZD eases from 1. 1590, after hitting fresh 12-year highs appeared com. The Aussie Dollar has rallied well beyond 2% against its New Zealand counterpart over the last two weeks, reaching 12-year highs near 1. 1600. RBA-RBNZ monetary policy divergence and weak New Zealand macroeconomic figures are crushing investors’ confidence in the New Zealand Dollar. The Reserve Bank of New Zealand rattled markets last month with a Jumbo (50 basis point) rate cut, and is expected to lower interest rates further in the coming months, in an attempt to support an ailing economic growth. New Zealand’s Gross Domestic Product (GDP) shrank at a 0. 9% pace in the second quarter and has contracted in three of the last five quarters. Data released earlier on Tuesday revealed that the RBNZ Inflation expectations for the last quarter of the year remain anchored at a 2. 28% yearly pace, which provides some leeway for the central bank for further monetary easing. The RBA, on the other hand, is showing a more hawkishly tilted monetary policy stance, thus creating an AUD-supportive policy divergence. The bank kept its benchmark interest rate unchanged at 3. 6% last week and warned about upside risks to inflation, which curbed hopes of any further rate cut in the near term. RBNZ FAQs The Reserve Bank of New Zealand (RBNZ) is the country’s central bank. Its economic objectives are achieving and maintaining price stability achieved when inflation, measured by the Consumer Price Index (CPI), falls within the band of between 1% and 3% and supporting maximum sustainable employment. The Reserve Bank of New Zealand’s (RBNZ) Monetary Policy Committee (MPC) decides the appropriate level of the Official Cash Rate (OCR) according to its objectives. When inflation is above target, the bank will attempt to tame it by raising its key OCR, making it more expensive for households and businesses to borrow money and thus cooling.