RBNZ Hawkesby: Economy will require continued support


Reserve Bank of New Zealand Christian Hawkesby is the Assistant Governor and General Manager of Economics, Financial Markets and Banking and he says some economic data are surprising on the upside.

However, he says that there is still a lot of uncertainty about the economy.

He added that the economy is still on life support to some extent and says the economy will require continued policy support.

He said that there are no concerns that negative rates are problematic for banks. 

Market implications

The kiwi is little changed overnight, having consolidated in a tight range around 0.6650 since Monday.

''RBNZ dovishness is a driver but short end interest rates are rising as the market pushes back the easing timetable that’s priced in, and, the general tone “out there” post-lockdown is vibrant, with a pre-GFC 2007 air to it, and that’s lifting spirits (and house prices),'' analysts at ANZ Bank explained.

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