Reserve Bank of New Zealand monetary policy announcement:
As expected, cash rate unchanged
- Not currently considering a rate increase
- Would be appropriate to lower the cash rate if demand weakens
- NZD unjustifiably high and unsustainable
More (via Reuters):
- Would be appropriate to lower rates if demand weakens
- Economy supported by low rates, high immigration, construction, falling fuel prices
- Says if wage and price setting outcomes settle lower, could cut rates
- Says auckland house price inflation elevated
- Says NZD unjustifiably high and unsustainable
- Closely watching impact on tradeables inflation from global forces
- Says lower dairy incomes, drought, fiscal consolidation, high NZ dollar weigh on growth
- Says underlying inflation is expected to pick up gradually
- Underlying inflation low, expected to pick up gradually
- Not currently considering raising rates
- Policy to focus on mid-term inflation trend
- Expects to keep policy stimulatory, not considering raising rates
- Uncertainties exist in Europe, China, Australia, timing of US rate rise
Full text is here: Statement issued by Reserve Bank Governor Graeme Wheeler:
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This is all as expected - no change in OCR, easing bias, jawboning the NZD lower
Greg is like lightning with NZD TA: Forex technical analysis: NZDUSD moves lower on RBNZ statement
