RBNZ’s Orr: Current price increases are proving more persistent

Dhwani Mehta FXStreet

There could be a prolonged period of faster inflation that requires a monetary policy response, courtesy of climate change, Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr warned at a virtual press briefing Tuesday in Wellington after the central bank released a report on climate change.

Key quotes

“Some of the price pressures we will see will lead to quite sustained, higher generalized prices.”

“We’re already seeing that in food prices globally and energy prices, transport, at present.”

“We will have to look through some very obvious price shocks but to the extent that they are persistent and truly changing the price of the basket of goods and services we consume, then there will be monetary policy reactions.”

“We’ve all talked about them, we all knew they were coming, we all said they may be temporary.”

“Now the general discussion is wow, these are persistent. Imagine that continuing now for the next 20-plus years. That is the world that we will be living in.”

Market reaction

NZD/USD is little affected by Orr’s comments, keeping its range around 0.7170, up 0.16% on the day.

Tesla’s Musk and Twitter’s Dorsey warn over rising inflationary pressures

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold remains below $5,050 despite Fed rate cut bets, uncertain geopolitical tensions

Gold edges lower after registering over 2% gains in the previous session, trading around $5,030 per troy ounce during the Asian hours on Monday. However, the non-interest-bearing Gold could further gain ground following softer January Consumer Price Index figures, which reinforced expectations that the Federal Reserve could cut rates later this year.

Week ahead: Data blitz, Fed Minutes and RBNZ decision in the spotlight

The US jobs report for January, which was delayed slightly, didn’t do the dovish Fed bets any favours, as expectations of a soft print did not materialize, confounding the raft of weak job indicators seen in the prior week.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.