RBNZ Governor Wheeler Speech - NZD Lower

October 14 2015

RBNZ Governor Wheeler Speech - NZD Lower

The Reserve Bank Governor Graeme Wheeler has just made a speech to Institute of Finance Professionals Conference in Auckland.

His key points were:

• Some further easing in interest rates seems likely

• Easing depends on emerging flow of economic data

• Conscious of impact of low rates on housing

• Greatest concern at this point lies around China growth outlook

• Any substantial depreciation of the Yuan would have serious implications for the world economy

• US is the main bright spot in the global economy

• Monetary policy is relatively powerless to influence decisions that determine long-run economic performance

• There is little monetary policy can do to persistently lower an exchange rate

• Recent economic indicators have been more encouraging

• Mentions for a 2nd time some further easing seems likely, depending on data

NZD is lower in immediate response.

Here’s the link to the full RBNZ press release on the speech:

http://www.rbnz.govt.nz/news/2015/infinz-speech-oct-2015.html

Current indicative levels are:

NZD-USD 0.6635 / 0.6660
NZD-AUD 0.9155 / 0.9180
NZD-EUR 0.5830 / 0.5855
NZD-GBP 0.4345 / 0.4370
NZD-JPY 79.50 / 79.75

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