There are 4 criteria that need to be filled before the RBNZ can intervene

Coming on the back of comments from the RBNZ’s Wheeler that intervention can have some short-term impact, Deutsche Bank have just listed the 4 criteria that need to be assessed before intervention is sanctioned:

  • Is the exchange rate exceptional on an historical basis:
  • Is the exchange rate┬ájustified:
  • Would intervention be in line with the RBNZ policy target agreement:
  • Do market conditions exist to successfully shift the NZD.

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