- Reserve Bank of New Zealand' governor, Orr, delivers a speech.
- Monetary policy remains as effective as ever.
Reserve Bank of New Zealand' governor, Orr, has said that the cut reflected an expected decline in trading partner growth, lower New Zealand inflation expectations, and a global swing to lower interest rates.
RBNZ Governor Orr - full speech
"A slowing global economic outlook, increasingly prompted by pockets of volatile politics, is keeping the world’s central bankers busy. In response to the economic chill, central banks around the world have lowered interest rates - often to record lows - to promote investment and spending. They continue to pursue their mandated low inflation goals.
That’s our job. We aim to keep inflation low and stable and contribute to maximum sustainable employment."
- Orr said that for small open economies like New Zealand, the exchange rate plays a significant additional role in the competitiveness.
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