Reserve Bank of New Zealand Governor Orr earlier:
NZD is seeing offers:
NZD had already been under some selling pressure but it increased after that remark from Orr. Monetisation of government debt is not something that inspires confidence in markets. Central banks have been accused of doing so, especially in the era of big QE, but do so by buying government debt from the market not from the government itself. Orr is saying he is not fussed with buying direct from the government.
Orr is a highly qualified and respected economist, this is not some mistaken comment, he knows what this means. I said earlier I expect the RBNZ &/or Orr to back pedal on this, we'll see.
