The ECB decision was a huge disappointment and you can’t argue with that. However, Reuters provided some insights about the decision in its article that was published during the week-end. Here are the most important statements:
- ECB’s Governing Council viewed the economic outlook as improved
- Pending Federal Reserve rate hike factored into the decision
- A big move by the ECB would possibly force the Fed to delay its own action
- Current ECB efforts having positive impact as it is
It seems that all central banks are awaiting FED’s decision and how the market will react. That’s a risk factor before the RBNZ meeting as the Bank may wait for the FED and assess the lift-off impact on the NZ economy.