• The Reserve Bank of New Zealand must provide to the Minister of Finance a “Statement of Intent” ( SOI ) for that financial year and at least the next two financial years
  • The most recent has just been published on the RBNZ website
  • The SOI is set in the context of the Bank’s longer-term planning and funding

Governor Wheeler said on its release:

  • “The Bank has been one of the catalysts for the current economic expansion”
  • “Five years of stimulatory interest rates moderated New Zealand’s recession in 2008 and 2009 and provided a platform for the current economic recovery.”
  • “We will continue to do our part to ensure economic growth is sustainable by running monetary policy so that we avoid the damaging impact of high inflation on competitiveness, real incomes and output growth.”

More:

  • Said house prices remain overvalued
  • Housing pressures are easing, but risks remain
  • Household debt levels are high
  • On the NZ dollar: “the factors driving our strong economic performance also attract large portfolio flows into New Zealand dollars, and the resulting upward pressure on our exchange rate diminishes the competitiveness of export and import competing firms that are not exposed to sectors enjoying high international prices”

The full statement is here

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Note, the statement is not specifically about monetary policy and as such contains nothing new for the FX market