RBNZ’s Orr: NZ dollar appreciation has moderated returns for exporters

Dhwani Mehta FXStreet

The NZ dollar appreciation has moderated returns for exporters, said the Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr while speaking at the post-monetary policy decision press conference online on Wednesday.

Additional quotes

“Auckland lockdown did not impact the policy decision today.”

“Fiscal policy remains primary responder to crisis.”

“Yesterday's new outbreak did not materially impact decision today.”

“RBNZ does not have more information on the cov1COVID-19 outbreak than is publicly known.”

“Banking system making progress on preparing for negative rates.”

“To ensure government bond market remains liquid.”

“It’s cap on holdings of government bonds has been lifted to 60%, from 50%.”

“To stick with current policy to purchase bonds from the secondary market.”

“Seeking to get bond yields lower.”

“Funding program would allow banks to borrow from RBNZ at rates near OCR.”

“Ready to lend funds to banks at negative rates, but bank reserves at RBNZ would also have negative rates.”

“No target in mind for govt bond yields.’

“Won't rule out a target being considered, not on table at present.”

“Buying foreign assets would not be effective in current conditions.”

“Mortgage repayment deferral to be extended.”

About the RBNZ press conference

Following the Reserve Federal´s economic policy decision, the Reserve Bank Governor gives a press conference regarding monetary policy. His comments may influence the volatility of NZD and determine a short-term positive or negative trend.

Market reaction

NZD/USD is little changed on the comments from the RBNZ Governor Orr, keeping its recovery mode intact near 0.6550. The spot loses 0.33% 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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