RBNZ’s Orr: Projections see normalizing of monetary policy by this time next year
|Early Thursday morning in Asia-Pacific, Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr crossed wires, via Reuters, while speaking before parliament's Finance and Expenditure Committee.
The RBNZ Boss reiterated the New Zealand (NZ) central bank’s statements suggesting a rate hike by late 2022 while citing optimism at home and abroad.
Key comments…
Global economic outlook has continued to improve.
NZ labor market very resilient.
In the near term expects the inflation rate to be above the midpoint of its target range.
Expects house price growth to slow dramatically in H2.
Positive outlook driven by vaccine rollout, reduced health risks.
Projections see normalizing of monetary policy by this time next year.
If there was a negative shock in the future we will sustain or increase monetary stimulus.
FX reaction
NZD/USD traders ignored the upbeat comments from RBNZ’s Orr as nothing new came out from the speech than what was already discussed the previous day. Hence, the kiwi pair consolidates the RBNZ-led gains around 0.7280-85 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.