What it means
The Reserve Bank of New Zealand is New Zealand's central bank, with a dual mandate: price stability (1-3% CPI target) and supporting maximum sustainable employment. RBNZ pioneered explicit inflation targeting in 1989. Official Cash Rate decisions at 7 meetings per year — 4 Monetary Policy Statements (more detailed) and 3 inter-meeting reviews (rate decision only).
Why it matters
RBNZ policy drives NZD direction. NZD/USD typically moves alongside AUD/USD (both commodity-linked, both Asia-Pacific) but RBNZ-RBA differentials can produce AUD/NZD-specific moves. Small economy → big monetary policy moves per capita; RBNZ is often a 'first mover' on global cycle inflections.
How to use it
Track RBNZ MPS meetings (most market-moving) and inter-meeting reviews. NZ economic data (GDP, CPI quarterly) drives policy expectations. Watch AUD/NZD as an isolated rate-differential trade.
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