Last night Powell testified in front of congress to define the Fed’s stance on the current and expected environment for the US economy. Inflation is currently the biggest concern to the global economy as stimulus rollouts continue inflation is on the rise. The Fed’s stance at the moment is that inflation is not a near term problem and their focus should be on increasing job creation.
This morning New Zealand's Central Bank decided to leave rates unchanged at 0.25% with no expectation to tighten monetary policy. The Central Bank also decided to retain its Large Scale Asset Purchases programme at NZ$100 billion. The bank’s statements are very dovish as it stresses the willingness to provide more stimulus and ability to implement negative interest rates, their forecast is that it should be unlikely.
For the remainder of the day keep an eye out for the Monetary Policy Report Hearing out of the UK at 4:30pm (SAST) as well as Powell testifying again at 5:00pm (SAST).
3:00am - RBNZ Monetary Policy Statement (NZD)
3:00am - RBNZ Rate Statement (NZD)
3:00am - Official Cash Rate (NZD)
4:00am - RBNZ Press Conference (NZD)
4:30pm - Monetary Policy Report Hearings (GBP)
5:00pm - Fed Chair Powell Testifies (USD)
5:30pm - Crude Oil Inventories