RBNZ’s Orr: Committee was confident in the level of restrictiveness of interest rates
|“The committee was confident in the level of restrictiveness of interest rates at the present point,” said Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr to New Zealand government Finance and Expenditure Committee on late Wednesday.
Key quotes
They (interest rates) are well above what we would consider neutral, are constraining spending and investment.
There were indicators consumer spending and aggregate demand as a whole were easing and in some places were falling in real terms.
The committee is confident monetary policy is restrictive and doing its job.
The central bank never rules out the need to change that view.
There were risks that the central bank would need to raise rates due to sticky inflation expectations and continued government spending.
There were also downside risks including weaker-than-expected gross domestic product and a larger-than-expected impact as households as they roll over on to higher mortgage rates.
NZD/USD stays depressed
NZD/USD holds lower grounds near early March levels, after falling the most since early February the previous day, defensive near 0.6100 by the press time.
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.