RBNZ’s Ha: Monetary policy stance still holds despite Delta outbreak, NZD/USD in highs

“Monetary policy stance still holds despite the Delta outbreak,” the Reserve Bank of New Zealand (RBNZ) Chief Economist Yuong Ha said in a statement on Monday.

Key quotes

“Delta variant raises some economic uncertainty but not a 'game-changer'.”

“There is no pressure to act on monetary policy.”

“Currency is performing as it normally does.”

“New Zealand going into nationwide lockdown at a better economic starting point.”

Market reaction

The encouraging remarks from the RBNZ officials add to the rebound in the NZD/USD pair, as it recaptures 0.6850 amid the risk-on market mood and the US dollar’s weakness. The spot is up 0.40% on the day, currently trading at 0.6851.