Reserve Bank of New Zealand Giovernor Hawkesby press conference now, following the rate cut earlier today:
- RBNZ cuts cash rate by 25bp vs. 25bp expected
- NZD/USD bouncing after the expected RBNZ 25bp cash rate cut
Hawkesby:
- Decision to hold vote on rates was healthy sign, not unusual at turning points
Is the RBNZ at a turning point? A hint or a 'typo' from Hawkseby?
- Did form a consensus projection for the cash rate, but high degree of uncertainty
- Central projections are wide enough for us not to have a bias either way on next steps at the next meeting
- Rates are in the neutral zone
- Being close to neutral, more about feeling your way on policy now
- Key message is that we have come a long way, not pre-programmed on moves now
- Committee members were comfortable with projection on rates, a difference on timing
