Home RBNZ Orr:  rate cut reduces probability of having to do more later, Kiwi rallies 0.30%
FXStreet News

RBNZ Orr:  rate cut reduces probability of having to do more later, Kiwi rallies 0.30%

RBNZ Orr has said that while the central bank will do whatever it takes to support NZ  economy, the rate cut  reduces probably of having to do more later.

Key comments:

  • We can afford to wait, watch and observe what’s happening.
  • Inflation expectations is an important signal to watch.
  • Rate cut reduces probability of having to do more later.
  • Rate reduces probably of having to do more later.
  • Negative can be an impactful tool broadly across the economy.  

The RBNZ  assistant governor said  if monetary policy is to be successful for a further 30 years we need to confront challenges of stubbornly low inflation, interest rates. He also has said the same comments as Orr today,   yesterday.  

FX implications:  

This is what the markets have been waiting for – some form of confirmation that the RBNZ is done for now which gives the green light for a correction. NZD is up 0.30% on the comments

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.