Whilst the RBNZ were expected to hold, their statement struck a hawkish tone by stating that “inflation remains too high”. And with traders front-loading a weak CPI print for the US later this week it has catapulted the New Zealand dollar higher. The consensus was firmly behind the RBNZ to hold their cash rate at 5.5% and for the meeting to be a non event. Yet the opening paragraph was quick to tip its hat to inflation remaining “too high”. And the speed at which NZD was catapulted to the top of the board shows that traders were ‘caught short’ and on the wrong side of the market. In recent weeks, we have seen the ... (full story)