Our policy approach is in line with the new US Federal Reserve (Fed) average inflation targeting strategy, Reserve Bank of New Zealand (RBNZ) deputy governor Christian Hawkesby said in a statement on Friday. .
“Sees ‘a number of parallels’ between the Fed and its own approach.”
“The position of the RBNZ is to allow inflation to exceed the target after a period of weakness.”
On Wednesday, Hawkesby said a lot of work needed to be done to meet monetary policy goals.
The NZD / USD is trading with strong gains and looks to retest the three-week highs of 0.6676 reached after Fed Chairman Jerome Powell’s speech.
Sentiment around the kiwi remains underpinned despite the rebound in US Treasury yields. At press time, the spot adds 0.35% on a daily basis to trade near daily highs of 0.6665.