The Bank of New Zealand Maintains Interest Rates at 0.25% / Gold Prices Remain Stagnant

After the interest rate meeting, the Bank of New Zealand announced that it would maintain interest rates at 0.25% and the loan financing plan and asset purchase plan at NZ$100 billion, which is in line with market expectations. In its statement, the central bank stated that it will maintain the current monetary policy unchanged until it is confident that inflation and employment can reach its targets, and will be prepared to lower interest rates (OCR) if necessary. In addition, it also pointed out that local price inflation may exceed the 2% target for a period of time, but believes that the supply chain interruption and rising oil prices and other factors affecting inflation are only short-lived, and reiterated that inflation and employment targets will take a long time to achieve.

Fed Chairman Powell and the Fed’s Beige Book both released dovish messages. The US dollar index was under pressure near a one-month low, but the price of gold has not yet ushered in this week’s recovery. It can be seen from this that the announcement of the suspension of Johnson & Johnson’s new crown vaccine in the United States continues to ferment, coupled with the continuous heating up of the Sino-US geopolitical war, the US President Biden’s infrastructure plan to counter China’s goals has gradually become clear, and the prospect of gold price recovery continues to be suppressed. As of 08:06 Hong Kong time, the price of gold rose by 0.05% to US$1,737.30.