Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
BOJ Rate Decision in Focus as Sticky Inflation, Weak Yen Shape USD/JPY and Nikkei Outlook 
Singapore Central Bank’s Exchange Rate Policy Explained: Why MAS Uses the S$NEER Instead of Interest Rates 
Fed Holds Interest Rates Steady as Kevin Warsh Says Rising Treasury Yields Tighten Financial Conditions 
Japan Government Backs Earlier BOJ Rate Hike as Inflation Pressures Build 
FxWirePro: Daily Commodity Tracker - 21st March, 2022 
RBI Holds Repo Rate at 5.25% as Inflation Risks and Global Uncertainty Persist 
China Holds Loan Prime Rates Steady for 14th Month as Economic Recovery Remains Uneven 
Add as a preferred source on Google
As early as June the Reserve Bank of New Zealand (RBNZ) made it clear that it will cut the key rate one more time should NZD not depreciate. Kiwi remains fairly well bid despite the Fed’s upbeat assessment of the US economy and the weaker AUD. An OCR cut is all but fully priced in for August, but markets remain reluctant to get short.
As per the RBNZ's new economic assessment of 21st July, kiwi has eased a little compared with the highs in July but was 6 percent stronger than expected in June on a trade weighted basis. NZD/USD downside from highs of 0.7325 on July 12 has halted at 0.6951 levels and the pair is extending upside for a 3rd consecutive day.
New Zealand inflation remains below the RBNZ’s target and has even disappointed to the downside in Q2 with 0.4 percent yoy. In its new economic assessment the RBNZ points out that the outlook for inflation has deteriorated since June and that “a decline in the exchange rate is needed”.
The RBNZ will therefore once again lower its key rate in August. It may also want to change the loan-to-value restrictions (LVR) as from September 1 and standardise them nationwide. These restrictions are intended to reduce the risk of a housing bubble due to low interest rates, which is a major concern for the RBNZ.
