Breaking: RBNZ's Orr: Today's decision doesn't rule out any future action, Kiwi weakest since Jan 2016
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The Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr is on the wires now, via Reuters, speaking at the post-monetary policy press conference.
RBNZ stunned markets by delivering a bigger-than-expected cut of 50-pips, knocking-off the Official Cash Rate (OCR) to a record low of 1.00%.
Key Quotes:
Today's decision doesn't rule out any future action.
Nothing is ruled out for the future.
Lower monetary policy operating at a lower neutral interest rate.
Lowering the interest rate is "completely sensible" at this point in time.
Nervous that fiscal spending can't happen quickly enough due to capacity constraints.
Over recent days monetary policy committee became convinced "more, sooner" better to reach targets.
Global interest rates have been declining and we’re part of that cyclical behavior.
About Press Conference
Following the Reserve Federal´s economic policy decision, the Reserve Bank Governor gives a press conference regarding monetary policy. His comments may influence the volatility of NZD and determine a short-term positive or negative trend.
The Kiwi is seen heading for a test of the 0.64 handle, its weakest since January 2016, as Orr leaves doors open for further rate cuts.
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