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
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• Further NZD depreciation is necessary
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• Several risks and uncertainties around the inflation outlook
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• Current monetary policy settings are providing stimulus to the economy
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• There is potential for further downward pressure on global dairy prices.
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• Forecast large cuts in interest rates over coming months only consistent with recession
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• Aiming to return inflation to around its medium-term target in about 9 to 12 months appropriate
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• Conscious of impact low interest rates can have on housing demand, house price inflation
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• Neutral 90-day rate currently sits in 4%-5% range
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• Low global rates could mean effective neutral rate at bottom or below range
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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

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