RBNZ’s Orr: Not forecasting recession but do see sub-par growth

Dhwani Mehta FXStreet

Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr is speaking at the August post-monetary policy meeting press conference on Wednesday, affirming the central bank’s hawkish policy tightening stance.

Key quotes

Not forecasting recession but do see sub-par growth.

New Zealand spending is underpinned by employment.

In a very strong position to get on top of inflation.

Household balance sheets still in good shape.

The neutral rate is a great unknown.

Did not consider 75 bps rate hike today.

50 bps moves have been orderly and sufficient.

House prices are now far closer to levels that would be sustainable.

Getting rates to 4% would buy comfort for policy committee.

Cash rate around 4% is unambiguously above neutral and sufficient to meet inflation mandate.

Market reaction

NZD/USD is keeping its range above 0.6350 on these above comments, adding 0.27% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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