Adrian Orr, the governor of the Reserve Bank of New Zealand has stated that he thinks there will be at least another couple of rate hikes. This is being reported by Bloomberg TV covering Jackson Hole.
Key comments
- Retail Sales decline a sign higher rates are biting.
- Our core view is won't see a technical recession.
Federal Reserve chair Jerome Powell’s speech is going to be key, but the bears are moving into the kiwi currently. The onus is on the chairman to strike a tone that is hawkish enough to allay fears of an inflation blowout. However, it will need to be a well-balanced delivery so as not to stoke recession fears.