RBNZ’s Orr: A few large banks having access to offshore funding is “something we have to watch”
|Reserve Bank of New Zealand (RBNZ) Governor, Adrian Orr, is holding a press conference about the Financial Stability Report, in Wellington. The central bank governor is yet to provide any direct guidelines about the macroeconomic moves.
Key comments
A few large banks having access to our offshore funding is something we have to watch.
We will be working closely to alter the Loan to Value Ratio (LVR) if needed.
Would still like debt to income tools as part of toolkit, is being discussed with the government in legislative review.
About Adrian Orr
Adrian Orr is the Governor of the Reserve Bank of New Zealand and has been since March 2018. The Reserve Bank uses monetary policy to maintain price stability as defined in the Policy Targets Agreement (PTA). The current PTA requires the Bank to keep inflation between 1 and 3 percent on average over the medium term. The Bank implements monetary policy by setting the Official Cash Rate (OCR), which is reviewed eight times a year.
FX implications
The NZD/USD pair recently benefitted from the RBNZ’s upbeat Financial Stability Report (FSR). However, the broad strength of the US dollar (USD), mainly due to the trade headlines and data, will keep the kiwi pair’s run-up in the check. It should also be noted that the New Zealand central bank Governor’s public appearances have been quite hawkish off-late and hence increase the importance of December month meeting.
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