HiFX Data Update - RBNZ Economic Update

HiFX Data Update - RBNZ Economic Update

The Reserve Bank of New Zealand has just released the previously unscheduled update on its economic assessment of NZ.

His key points were:

• Reason for this update was given as the longer-than-usual gap between Monetary Policy Statements

• Decline in NZD is needed

• Further policy easing will be required

• High NZD makes it difficult for the bank to reach its inflation objective, adding to headwinds for dairy, manufacturing

• Will continue to watch emerging flow of economic data

• Outlook for inflation has weakened due to high NZD

• House price inflation excessive

• Bank curbs aim to limit financial sector instability

• Many uncertainties around the outlook.

NZD is lower across the board in immediate response.

Here’s the link to the full RBNZ Update:

http://www.rbnz.govt.nz/news/2016/07/reserve-bank-releases-economic-update

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