Reserve Bank of New Zealand Governor Wheeler, press conference now:

  • Economy growing well, strong employment growth
  • Inflation will continue towards mid point of band
  • RBNZ has adopted a neutral bias (from previous easing bias)
  • Risk of OCR (official cash rate) increasing or decreasing are evenly balanced
  • Indicators of uncertainty higher in past months, Brexit, Article 50 ... but biggest risks around US, and China debt position
  • US policy uncertainty risk - TPP collapse, potential renogitation of NAFTA (Wheeler highlights costs of potential higher tariffs imposition by US ... highlights 45% tariff the new US administration has floated on China goods)
  • Another risk is uncertainty around US fiscal policy
  • If the exchange rate was 7% lower it would be beneficial (Wheeler discussing the run of rate cuts and yet the NZD is 7% higher)

Wheeler accompanied by John McDermott. Department. Economics. Team. Assistant Governor and Head of Economics

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Earlier:

  • Analysts react to the RBNZ decision
  • Live stream of the RBNZ press conference
  • NZZDUSD initial move is lower after decision
  • Full text of the RBNZ statement
  • New Zealand dollar quickly lower on the OCR decision
  • RBNZ holds rates at 1.75%, as expected