RBNZ’s Orr: Not forecasting recession but do see sub-par growth
|Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr is speaking at the August post-monetary policy meeting press conference on Wednesday, affirming the central bank’s hawkish policy tightening stance.
Key quotes
Not forecasting recession but do see sub-par growth.
New Zealand spending is underpinned by employment.
In a very strong position to get on top of inflation.
Household balance sheets still in good shape.
The neutral rate is a great unknown.
Did not consider 75 bps rate hike today.
50 bps moves have been orderly and sufficient.
House prices are now far closer to levels that would be sustainable.
Getting rates to 4% would buy comfort for policy committee.
Cash rate around 4% is unambiguously above neutral and sufficient to meet inflation mandate.
Market reaction
NZD/USD is keeping its range above 0.6350 on these above comments, adding 0.27% on the day.
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.