RBNZ Hawkesby: Less stimulus required than thought in August

Ross J Burland FXStreet

The Reserve Bank of New Zealand's assistant governor, Christian Hawkesby, has given the kiwi boost in the Tokyo open in saying that less stimulus is required than thought in August.

He expects FLP to lower lending rates ‘reasonably quickly’.

RBNZ will respond if FLP doesn’t deliver enough stimulus.

Can still use negative OCR as a policy tool if required.

Uncertainty wide, still some big downside risks.

NZD/USD reaction

Meanwhile, however, with the market's focus on the coronavirus, it may be concerned for the latest Reuters news that New Zealand says there is a new community case of covid-19 reported in Auckland.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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