RBNZ adds jobs mandate to PTA

Joshua Gibson FXStreet

The Reserve Bank of New Zealand (RBNZ) has added a jobs mandate to the Policy Target Agreement (PTA), an update to the central bank's policy targets that is signed each time a new Governor of the RBNZ is brought on board. Adrian Orr will be taking over the helm of the RBNZ effective on the 27th, this Tuesday, and he brings with him an updated PTA mandate that includes employment.

Adding an employment byline in the PTA has been anticipated for a while, and the move brings the RBNZ's structural targets in-line with that of the US Fed. The RBNZ's inflation target remains unchanged, resting at the 2% midline of the 1-3% band, and governing decisions will now be partially made by a cyclical committee of advisors, rather than resting solely on the shoulders of the Governor.

Key details:

The Policy Target Agreement will continue to seek inflation at the 2% midline.
Decisions at the helm will now be made by a voting committee instead of relying soley on Governor's discretion.
Voting committee to come into effect sometime in 2019.
RBNZ will be responsible for maintaining/improving sustainable employment.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

EUR/USD hovers around 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot around 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold: Is the $5,000 level back in sight?

Gold snaps a two-day downtrend, as recovery gathers traction toward $5,000 on Wednesday. The US Dollar recovers from the overnight sell-off as rebalancing trades resume ahead of Fed Minutes. The 38.2% Fib support holds on the daily chart for now. What does that mean for Gold?

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.