Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
RBA Signals Possible Rate Implications as Inflation Proves More Persistent 
New RBNZ Governor Anna Breman Aims to Restore Stability After Tumultuous Years 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
U.S. Stocks Rise as Cooler Inflation Boosts Hopes for Fed Rate Cut 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
U.S. Stocks End Week Higher as Markets Anticipate Fed Rate Cut 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
![](https://www.pinterest.com/pin/create/button/?url=https://econotimes.com/RBNZs-PTA-aims-at-supporting-maximum-sustainable-employment-in-context-of-medium-term-inflation-target-1220608/&media=https://f1.econotimes.com/2018/03/5ck9fksxkg.png&description=RBNZ’s PTA aims at supporting "maximum sustainable employment" in context of medium-term inflation target - EconoTimes)
The Reserve Bank of New Zealand’s (RBNZ) Policy Target Agreement (PTA), signed early Monday aims at supporting "maximum sustainable employment" in the context of its medium-term inflation target. This policy mandate is broadly in line with those in the United States and Australia.
Although policy rates (and now mandates) in these economies are currently very similar, the policy outlooks are quite different. The RBNZ does not expect to increase interest rates until 2019, whereas the FOMC increased rates last week and expects two more hikes this year. Market pricing for policy in New Zealand is similar to that in Australia, with about a 30 percent chance of a hike priced for both by year end.
"Given the similar policy outlooks for the RBA and RBNZ, we expect the NZD/AUD to keep muddling along. However, the NZD/USD will be put on the defensive in 2018. Policy rate differentials and diminishing global liquidity suggest depreciation may be only a matter of time," ANZ Research commented in its latest report.
Lastly, FxWirePro has launched Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
