RBNZ’s Orr: Focused on being operationally ready to implement negative rates if necessary

Dhwani Mehta FXStreet

The Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr said that they are focused on being operationally ready to implement negative rates if necessary, in his scheduled speech on Wednesday.

Further comments

Fiscal and monetary policy must work hand-in-hand.

There will always be trade-offs when implementing monetary policy.

Economic risks still skewed to the downside.

Monetary policy objectives have not changed.

Rising house prices have increased perceived wealth.

RBNZ takes asset prices into consideration when assessing policy decisions.

New policy tools will become mainstream.

Actual use will depend on economic context at the time, and relative efficiency.

Rates will have to be low for a 'very long period'.

Market reaction

The kiwi dollar was little changed on Orr’s comments, as NZD/USD kept its range around 0.7065, posting small gains on the day.

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.

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