RBNZ Gov. Orr: Lockdown has highlighted how disruptive the virus can be
|The Reserve Bank of New Zealand's governor Adrian Orr has recently crossed the wires and stated that the lockdown has highlighted how disruptive the virus can be.
- The decision to hold the OCR made in context of level four.
Recall that the RBNZ surprised by holding rates at 0.25% on August 18.
The decision was as made in the context of the Government'simposition of Level 4 COVID restrictions on activity across New Zealand.
The Committee said that it would assess the inflation and employment outlook on an ongoing basis, with a view to continuing to reduce the level of monetary stimulus over time so as to best meet their policy remit.
Employment is currently at or above its maximum sustainable level, and consumer price inflation expectations remain anchored near 2 per cent, the midpoint of the target range.
Meanwhile, the Committee noted that the New Zealand economy had rebounded more strongly than most countries, with the less domestic disruption caused by COVID-19 to date.
Hence, AUD/NZD has been a one-way street since mid-June:
The Reserve Bank of Australia meets today which is the main event.
See more information here: Reserve Bank of Australia Preview: Focus on tapering and growth
Meanwhile, in other related news, deputy governor of the RBNZ, Geoff Bascand, said that he will leave the bank in January 2022.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.