RBNZ Gov Orr says global and domestic low inflation expectations key reason for lower official interest rates

Author: Eamonn Sheridan | Category: Central Banks

Reserve Bank of New Zealand  Governor Adrian Orr

Statement issued in response to a bit of controversial opinion piece from BusinessNZ chief executive Kirk Hope.

Orr:
  • We are operationally independent, our mandate is clear, our goals are clear, and our decision making is transparent.
  • Given the long and variable lags between setting the Official Cash Rate and the impact on inflation and employment outcomes, our decision making is deliberately forward looking. 
  • We cannot, and do not, set the OCR based on current or historical inflation and employment outcomes. We scan the horizon and chart for the journey. We look ahead - not behind.
I am surprised he didn't express an interest in buying Greenland but there you go ;_) 

Reserve Bank of New Zealand  Governor Adrian Orr
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