RBNZ’s Orr: Forward guidance as to future policy is important

More comments are flowing in from the RBNZ Governor Orr, as he continues to speak on the monetary policy outlook.

Forward guidance as to future policy is important.

Forward guidance as to future policy is important.

Monetary policy cannot directly resolve uncertainty.

As a small open economy, our neutral interest rate is heavily driven by the global rate.

A falling neutral interest rate will increasingly push the reserve bank to the limits of conventional monetary policy space.

We are readying ourselves if we need to act further by developing principles on unconventional monetary policy.

We expect the economy to recover over 2020.

The Kiwi keeps its recovery mode intact near 0.6380 despite the dovish remarks from Orr, as fresh US-China trade deal hopes lend support to the Chinese proxy, the NZD.