RBNZ’s Orr: Interest rates need to remain low for a long time - Kiwi off the highs

Dhwani Mehta FXStreet

Reuters is out with the latest comments from the Reserve Bank of New Zealand (RBNZ) Governor Orr, as he makes some dovish comments on the monetary policy.

Key Quotes:

Door is open for a rate cut if needed.

Starting to see signs of a pick up in activity.

We are in a nice position to observe data.

Lower exchange rate is adding stimulus.

Monetary policy is already very stimulatory.

Market reaction to rate decision was not a surprise.

Key message is rates will be low for a long period.

Unconventional policy is possible but not core forecast.

Biggest downside risk is global uncertainty.

The recovery in the Kiwi, led by the big beat on the NZ Business Manufacturing PMI, stalls near 0.6385 region, as Orr’s dovish comments weigh.

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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