Reserve Bank of New Zealand acting governor Grant Spencer Speaking at the news conference
- NZD is in vicinity of fair value
- have seen stronger traded goods inflation because of lower exchange rate, higher commodity prices
- we are happy to see recent fall in NZD, NZD closer to sustainable level than previously
- monetary policy is still at quite an easy stance, expected to continue
- RBNZ does not have a precise estimate of where employment equilibrium is, have to work on that
- mon pol cannot affect the equilibrium rate of unemployment
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- Reviewing LVR restrictions and criteria
- Will say more in Financial Stability Review
- Not looking at introducing new tools in current housing market
- LVRs were always temporary
- LVRs will not be removed in one hit
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- Agree RBNZ Act should be changed to implement policy committee
- Important that committee has collective responsibility