The Reserve Bank of New Zealand’s (RBNZ) Christian Hawkesby, Assistant Governor/GM Economics, Financial Markets and Banking, recently crossed wires while supporting the low levels of Official Cash Rate (OCR). The same could be witnessed in earlier comments from the RBNZ Governor during last-week.
Key quotes
We need to keep rates at low level for some time.
Global risks are still to the downside.
Very open and willing to provide more stimulus if needed.
FX implications
In a reaction to the additional support for easy money policy, NZD/USD extended its downside below 100-day Exponential Moving Average (EMA) to 0.6395 by the press time of early Asian session on Tuesday.
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