As 2030 is now much closer than 2020, we are officially entering a new era for Central Banks, and there’s a wave of fresh Governors and Presidents taking the lead.
Between the Federal Reserve expecting to leave space for the arrival of Kevin Warsh at its head (and he means a lot of change), ECB’s Lagarde potentially stepping down before the end of her 2027 term, and CBDCs (Central Bank Cryptos) expected to enter the scene, there will be quite a lot changing for Central Banking in the coming times.
And the Royal Bank of New Zealand actually took the lead, with Anna Breman replacing former Governor Hawkesby at the head of the Kiwi Central Bank.
She delivered her debut during yesterday’s Press Conference, with the RBNZ holding rates at 2.25%.
The speech itself wasn’t anything revolutionary – the new Governor took a balanced approach to the outlook, with housing and labor both stabilizing after years of struggle. However, inflation is still looking a bit shaky as it starts to tilt in the right direction.
Anna Breman struck a cautious, relatively dovish tone in her debut, prioritizing a steady recovery over aggressive tightening. She slightly front-loaded the timing for future hikes (now priced for one towards this year-end).
Breman emphasized that the economy remains fragile, effectively balancing stabilizing data with a commitment to maintaining accommodative conditions as the NZ economy still recovers from an awkward period.
Since, the Kiwi Dollar has plunged at the lows of the FX board as Participants estimated that the new Governor sounded a bit more dovish than expected – Front-end rates corrected slightly after the meeting.
You can access the entire RBNZ statement right here.
Let’s dive right into a multi-timeframe analysis of NZD/USD to spot if recent moves provide opportunity for action.
