- Policies to encourage private sector savings, and to increase flexibility in the economy are the way to sustainably lower New Zealand’s real interest rates and take pressure off the exchange rate
- says “Would like to see a lower exchange rate”
- Says high terms of trade is aiding NZD strength
- High exchange rate causes economic imbalances
- Says intervention unlikely to sustainably lower dollar
- Little that monetary policy can do about the FX rate
- Says exchange rate at historically high levels
RBNZ Assistant Governor Dr John McDermott speaking in Wellington, about influences on the exchange rate.
This is not news from McDermott – the RBNZ have been trying to talk the NZD lower for a long time now (with some successes). The NZD has had a bit of a wiggle but is marginally changed on the speech.
