“Price pressures in the economy likely to be temporary,” the Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr said while speaking at the post-monetary policy decision press conference on Wednesday.
Key quotes
Tentative signs of business investment on the rise.
Feel comfortable using projection of OCR as guidance.
OCR projection will only happen if the economy pans out as expected.
Confident that risk of generalized inflation remains low.
Always forward looking on setting interest rates.
Some of the more extreme economic risks are off the table.
House prices do not enter our decision making.
House price growth is waning, supply of housing increasing.
See long period of flat house price growth.
Forecasts include the latest budget, fiscal policy still our friend.
OCR projections are very highly conditional.
Plan is for asset buying to remain in place until June 2022.
“Important message is that OCR is not forward guidance,” the RBNZ Assistant Governor Christian Hawkesby said while speaking alongside Governor Adrian Orr at the monetary policy press conference.
NZD/USD reaction
NZD/USD clings to the recent advance, flirting with two-week highs of 0.7297 on upbeat comments from Governor Orr. The spot is up nearly 1% on the day.