Swift market reaction as RBNZ calls time on money printing

Kiwibank chief economist Jarrod Kerr said interest rate swaps jumped 8 to 10 basis points with “more upside in rates to come”. (Image: Getty)

Dan Brunskill

Wed, 14 Jul 2021

The Reserve Bank of New Zealand surprised the market today with an announcement it will end its bond buying programme within the next 10 days. Currency and bond traders reacted immediately, pushing interest rate swaps and the NZ dollar higher. Kiwibank chief economist Jarrod Kerr said interest rate swaps jumped 8 to 10 basis points with “more upside in rates to come”. The yield on a 10-year government bond lifted more than 7 basis points, with similar movements across the yield curve. ANZ chief economist Sharon Zollner sa...

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