New Zealand Cash Rate will define the fate of NZD!
Reserve Bank of New Zealand (RBNZ) will reveal Official Cash Rate and make a statement about monetary policy on October 6, 04:00 GMT+3.
Japanese yen dives after BOJ meeting
On Friday, the common currency kept declining after yesterday's considerable sag against the evergreen buck. The key catalyst for the dive of the currency pair EUR/USD are the outcomes of the ECB gathering as well as the statement of ECB Governor Draghi.
During yesterday's gathering, the EU’s key bank announced the reduction of the quantitative easing initiative from September to December, although added that rates are going to remain at current levels until the summer of next year. Following the gathering, the European Central Bank left the benchmark interest rate at 0%. The European Central Bank told it would have the monthly volume of bond purchases cut under the QE initiative starting from October from 30 billion euros to nearly 15 billion euros and finish the program in December this year.
Additionally, ECB Governor Mario Draghi stressed that stimulation through monetary policy is still required. He added that the major bank will keep moving towards its objective.
Japan’s currency headed south a bit after it was unveiled that the Bank of Japan left its the deposit rate intact at the level of -0.1%.
The annual volume of buying of ETF is kept intact at about Y6 trillion, while the annual volume of buying of J-REIT accounts for Y90 billion yen.
According to the statement of Japan’s main financial institution, the Asian country’s economy is soaring modestly, while inflation expectations are moving sideways.
The statement ascertains that inflation is capable of speeding up to 2% because the gap in output is going to get better. As a matter of fact, inflation expectations in Japan are currently soaring. As for CPI, it’s still fluctuating between 0.5%- 1%.
By the way, member of the Board of the Bank of Japan Kataoka didn’t appreciate the retention of the interest rate at the same level.
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