Reserve Bank of New Zealand Governor Orr writing a piece
Full text is here:
Main points:
- monetary policy remains as effective as ever
- for small open economies like New Zealand, the exchange rate plays a significant additional role in competitiveness
- recent OCR cut reflected an expected decline in trading partner growth, lower nz inflation expectations, and a global swing to lower interest rates
- monetary policy has its limitations and needs to be partnered with broader fiscal and structural economic policy
- says a lower than otherwise NZD will promote export earnings
Orr has not rested since the 50bp rate cut a couple of weeks ago. he has been all over the place with comments and speeches and such. earning his pay check he is.
The way to read this:
- the exchange rate plays a significant additional role in competitiveness
is he'd be happy with a lower NZ dollar.
His effort at subtle jawboning.
