RBNZ’s Orr: 50-point cut was driven largely by domestic concerns – AFR

In his interview to the Australian Financial Review  (AFR), the Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr said that latest decision to announce a 0.50% rate cut was driven largely by domestic concerns.

Key quotes

• RBNZ’s 50-point cut was driven largely by domestic concerns.
• We saw our own inflation expectations starting to decline and we didn’t want to be behind that curve.
• Mr Orr pointed to a long list of global political flash points already weighing on sentiment.

FX implications

Markets showed little reaction to the news which could have been the key piece if the statements signaled any direction policy action in the future.