INSIDE ASIA: Kiwi Soars as RBNZ Holds Rate, Yen Slips With Data
(Bloomberg) -- The Kiwi jumps after RBNZ held rates, while most Asian currencies were little changed after the Fed also kept interest rates unchanged.
- New Zealand dollar rose as much as 1.4%, after the central bank left the official cash rate at 2.25%, while signaling easing might be needed
- There was a deliberate attempt by the RBNZ to maintain a clear dovish tone, perhaps recognizing the possible NZD consequences of a more upbeat message: ANZ economists Cameron Bagrie and Philip Borkin
- Annual core inflation remains within target range and long-term inflation expectations are well-anchored at 2%, according to the central bank
- Asian currencies largely unchanged post FOMC meeting, though yen slips 0.2% ahead of BOJ decision this morning
- Risk sentiment post-FOMC was supported with equities firmer, dollar index was largely stable, continues to be cautious month-end USD/AXJ sell flows: Christopher Wong, senior FX analyst at Maybank
- Japan releases slew of economic data that suggests Kuroda is far from his 2% inflation goal
- March core CPI fell 0.3% y/y, ests. -0.2%; industrial output rose 3.6% y/y, ests. +2.8%
- BlackRock’s Fink says BOJ’s Kuroda has run out of runway; adds monetary policy in Japan will continue to fail
- Yuan drops after PBOC lowers fixing first time in three days
- Market may have expected PBOC to continue raising yuan fixing to defend RMB index, so the lower reference rate surprised some and brought offshore yuan lower, says Fiona Lim, senior FX analyst at Maybank
- PBOC is said to urge rules to manage lending cos.: China Business News
- Rupiah drops after rising as much as 0.11% earlier
- Bank Indonesia to launch 2015 economic report, with speakers including Governor Agus Martowardojo, Finance Minister Bambang Brodjonegoro and Coordinating Minister for Economic Affairs Darmin Nasution
- Central bank may lower the primary reserve requirement by another 50bps before yr end to boost lending, Gundy Cahyadi, economist at DBS Group Holdings, said in Jakarta yesterday
Alert:
HALISTER1Source: BFW (Bloomberg First Word)
People Agus Martowardojo (Bank Indonesia)
Bambang Brodjonegoro (Republic of Indonesia)
Christopher Wong (Malayan Banking Bhd)
Darmin Nasution (Republic of Indonesia)
Fiona Lim (Malayan Banking Bhd)
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