BoE Policymaker Alan Taylor Signals No Need for Interest Rate Hike Amid Iran War Inflation Risks 
BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
China Keeps Loan Prime Rates Unchanged for 13th Straight Month as Policymakers Prioritize Credit Demand Recovery 
RBA Expected to Hold Interest Rates at 4.35% as Markets Watch AUD/USD and ASX 200 
Following the FOMC announcements, the Reserve Bank of New Zealand will make its rate decision scheduled at 2000 GMT. Markets do not expect a rate cut as recent inflation data failed to impress the markets, and as risks in China continues to worry the economy. Moreover, the central bank had cut interest rates in December and was firm to keep it unchanged over the coming months.
The economy faces downside risk as the oil prices continue to decline, with rising uncertainties in Chinese economy. The global turmoil has affected the NZD as it depreciated 5 percent against the USD, reassuring the RBNZ's policy stance.
"As long as the NZD weakens further the RBNZ will leave rates unchanged. Should the downside risks increase notably and/or the NZD appreciate again the RBNZ will take action again. That is exactly what it is likely to signal tonight. That means the NZD remains under downside pressure", says Commerzbank in a research note.
