Ending support: Pedestrians walk near the BoE in London. The bank has slowed bond-buying and signalled that it is on course to end that support later this year. — Bloomberg
AUCKLAND: Central banks are beginning to tip toe away from their emergency monetary settings, with New Zealand following in the footsteps of Canada to flag a potential interest-rate increase next year.
Markets seized on the tightening narrative on Wednesday, jolting New Zealand bond yields and its currency higher. As vaccines rollouts continue and economies reopen, traders have been slowly dialling up expectations on rate hikes or a slowing of asset purchases elsewhere too.
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