The Reserve Bank of New Zealand’s (RBNZ) Governor Adrian Orr recently held a press conference to address the dovish policy pivot that resulted in a surprise 25 basis point (bps) interest-rate cut on Wednesday.
Orr fielded questions from the press during the conference and shared some key quotes:
“We are confident inflation back in its target band can commence re-normalize rates.”
“We considered a range of moves, consensus was for 25 bps.”
“Keen to see actual inflation data.”
“Rates not back at neutral in the forecast period.”
“We had no pressure from lawmakers on rates.”
“Projections show we are going back into period of low and stable inflation.”
“Broad range of indicators are consistently soft.”
Developing story…
Market Reaction to RBNZ Orr’s Presser
The NZD/USD pair saw a decline to near 0.6115 following Orr’s comments, down 1.05% on the day.
RBNZ FAQs
For those looking to understand the impact of the Reserve Bank of New Zealand (RBNZ) and its monetary policy decisions, here are some frequently asked questions:
- What are the economic objectives of the RBNZ?
- How does the RBNZ’s Monetary Policy Committee decide on the Official Cash Rate?
- Why is employment important for the RBNZ?
- What is Quantitative Easing and when does the RBNZ use it?
Understanding these key points can provide valuable insight into the RBNZ’s actions and their implications on the financial markets.