Earlier, the announcement and Statement from the Reserve Bank of New Zealand and the NZD response:
- RBNZ: No change to cash rate
- Forex technical analysis: NZDUSD tumbles after RBNZ does not budge.
Coming up at 2200GMT, Governor Wheeler addresses the media.
There were expectations the Bank would move closer to a tightening bias but this was not the case, Wheeler clearly stating:
- Developments since the February Monetary Policy Statement on balance are considered to be neutral for the stance of monetary policy.
- Monetary policy will remain accommodative for a considerable period. Numerous uncertainties remain and policy may need to adjust accordingly.
The NZD took a tumble on this, and also on his comments on the NZD:
- The trade-weighted exchange rate has fallen by around 5 percent since February, partly in response to global developments and reduced interest rate differentials.
- This is encouraging and, if sustained, will help to rebalance the growth outlook towards the tradables sector.
That Wheeler would like a sustained lower NZD is no secret.
So, stay tuned for Wheeler, live stream of the news conference will be from here
