RBNZ governor Orr: Want the OCR unambiguously above neutral
|The Reserve Bank of New Zealand's governor Adrian Orr is crossing the wires and has said that he wants the OCR unambiguously above neutral.
Key comments
- Domestic demand is running too fast.
- Labour resources are acutely scarce.
- Rate signals have been well received by the market
Meanwhile, the Reserve Bank lifted the official cash rate by 50 basis points to 3% this week noting in its monetary policy statement that its monetary policy committee had discussed whether “more rapid increases could improve the credibility” of its inflation targeting. The NZ dollar had been strong on the back of the move but the US dollar has rallied as hawkish narratives have been ushered in again by Federal Reserve speakers.
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