Implications on Kiwi from BoE, Fed and RBNZ divergences? - ANZ

Analysts at ANZ explained that the shift in tone at the BoE means things continue to hot up.

Key Quotes:

"At the last BoE meeting the vote was 5-3. Yesterday BoE chief economist Haldane implied he was erring towards a hike, and overnight, BoE MPC member Kristen Forbes said that there is “some urgency in tightening monetary policy... the longer (or greater amount by which) this trend rate of inflation moves away from target, the more difficult it will be to return to target”."

"The tone is changing, tally up the vote and it may be 5-3 the other way next time.

But when you consider the contrast between this tone (and recent Fedspeak) and the RBNZ’s relaxed stance, it is likely to have (downward) implications for the lofty NZD."