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