HiFX - RBNZ Governor Wheeler comments - NZD higher
HiFX - RBNZ Governor Wheeler comments - NZD higher
The Reserve Bank Governor Graeme Wheeler has just been speaking to the Export NZ/Tauranga Chamber of Commerce.
His key points were:
• Further monetary policy easing is
likely to be required to maintain NZ
growth
•
• Further
NZD depreciation is
necessary
•
• Several
risks and uncertainties around the inflation
outlook
•
• Current
monetary policy settings are providing stimulus to the
economy
•
• There
is potential for further downward pressure on global dairy
prices.
•
• Forecast
large cuts in interest rates over coming months only
consistent with
recession
•
• Aiming
to return inflation to around its medium-term target in
about 9 to 12 months
appropriate
•
• Conscious
of impact low interest rates can have on housing demand,
house price
inflation
•
• Neutral
90-day rate currently sits in 4%-5%
range
•
• Low
global rates could mean effective neutral rate at bottom or
below range
•
NZD is higher
across the board in response.
Here’s the link to the full RBNZ press release on the speech:
http://www.rbnz.govt.nz/news/2015/news-release-gw-speech-inflation-outlook-july-2015.html
Current indicative levels are:
NZD-USD
0.6710 / 0.6735
NZD-AUD 0.9140 / 0.9165
NZD-EUR
0.6065 / 0.6090
NZD-GBP 0.4290 / 0.4315
NZD-JPY
82.90 /
83.15
ends