Published February 23, 2022 7:46 am est
by Richard F. Cason, 
Currency Analyst, NewsMovesmarketsForex
Key Take away’s-
- RBNZ Raised the Official Cash Rate to 1 percent
- NZD strengthens against the USD soaring 68 Points on 1 percent NZD rate hike
- RBNZ Committe decides to Reduce the Purchase of the Large-Scale Asset Purchases Program
- Committe also agreed to continue to Reduce the level of Monetary Stimulus
- RBNZ concern over the pace of growth, which is expected to slow, weighed down by resource and production constraints
The Republic Bank of New Zealand committee met on February 22, 2022, unanimous agreed to raise the official cash rate to one percent. After the News release hit the wire the NZDUSD immediately began to surge higher from an intra low of .06730 to a high of .06773. As of this writing the NZDUSD is trading at .6798, a 68 PiP bullish move; 1 hour prior to the opening bell of the New York American trading session.
Be sure to catch our story what happen one year ago to this date on RBNZ Maintains OCR Unchanged at .25 Percent NZDUSD Surges 64 pips Feb 24, 2021.
The RBNZ committee said that it would commence the gradual reduction of the Reserve Bank’s Bond holdings in the Large-Scale Asset Purchases Program. As well as to begin to reduce the level of monetary stimulus spending.
Also noted that the global economic activity is generating rising inflation pressures, which has exacerbated ongoing supply disruptions resulting in bottle necks in the economic over all supply chain.
