RBNZ’s Orr: Keeping rates at 0.25% “for now”

Dhwani Mehta FXStreet

“Keeping rates at 0.25% ‘for now’,” the Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr said while addressing the post-monetary policy decision press conference on Wednesday.

Additional quotes

Lockdown is a concern, but less concerned than would have been last year.

Country is in a very good position to maintain economic momentum.

Clear reduction is to be lifting cash rate.

Lockdown has given time for pause.

Concern is around supply capacity.

Expects rolling periods of disruption from covid.

Would need to significantly different outcomes on demand to change policy path.

House prices are above sustainable levels.

NZD reaction

NZD/USD keeps its recovery mode intact on upbeat comments from Governor Orr, currently trading at 0.6938, up 0.20% on the day.

The pair hit nine-month lows of 0.6870 on RBNZ’s hawkish hold but quickly rebounded.

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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