RBNZ’s Hawksby: OCR projections of a rate hike at the end of next year is conditional
|RBNZ Assistant Governor Christian Hawkesby crossed wires, via Reuters, during early Monday. The Reserve Bank of New Zealand’s (RBNZ) senior official conveyed the RBNZ preference, “To have a monetary stimulus in place for a longer period of time than take it away too quickly,” per Reuters.
“Our messages around having stimulus in place for a considerable period, being patient and our least regret is keeping stimulus in place for too long rather than taking it away too quickly, all of those messages stay in place,” RBNZ’s Hawksby added.
Additional comments…
Similar amount of stimulus still needed as back in February.
OCR projections of a rate hike at the end of next year is conditional on underlying economic assumptions.
Aware that markets trying to get ahead of bias, must remember these are conditional projections.
Recent covid-19 outbreaks a reminder that uncertainties remain.
Inflation not seen reaching sustainable levels until tail end of projections.
FX reaction
NZD/USD eases from the intraday high of 0.7261 towards 0.7250 following the news.
Read: NZD/USD: Recovery moves capped around mid-0.7200s following China PMI
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.