Reserve Bank of New Zealand Governor Wheeler, press conference now:
- Economy growing well, strong employment growth
- Inflation will continue towards mid point of band
- RBNZ has adopted a neutral bias (from previous easing bias)
- Risk of OCR (official cash rate) increasing or decreasing are evenly balanced
- Indicators of uncertainty higher in past months, Brexit, Article 50 ... but biggest risks around US, and China debt position
- US policy uncertainty risk - TPP collapse, potential renogitation of NAFTA (Wheeler highlights costs of potential higher tariffs imposition by US ... highlights 45% tariff the new US administration has floated on China goods)
- Another risk is uncertainty around US fiscal policy
- If the exchange rate was 7% lower it would be beneficial (Wheeler discussing the run of rate cuts and yet the NZD is 7% higher)
Wheeler accompanied by John McDermott. Department. Economics. Team. Assistant Governor and Head of Economics
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Earlier:
- Analysts react to the RBNZ decision
- Live stream of the RBNZ press conference
- NZZDUSD initial move is lower after decision
- Full text of the RBNZ statement
- New Zealand dollar quickly lower on the OCR decision
- RBNZ holds rates at 1.75%, as expected