RBNZ Governor Wheeler media conference post RBNZ OCR meeting
The Reserve Bank Governor Graeme Wheeler is
currently holding his post RBNZ OCR meeting media
conference.
His key points are:
• Reserve Bank
of NZ says future interest rate decisions will be driven by
data
• RBNZ says view on rates has not changed much
since previous rate decision
• Will talk to Finance
Minister about macro-prudential tools in next few
weeks
• One further cut built into interest rate
projections
• Tourism, jobs growth, construction among
drivers supporting NZ economic growth
• Inflation
expectations have stabilized, some inflation pressure coming
through
• Further monetary stimulus would have lead to
further upward pressure on housing market
• Picture
will be much clearer by August Monetary Policy Statement
after GDP & CPI data
• Can’t ignore Auckland property
market
• Financial stability concerns not sole driver
of rates
• Won't hesitate to adjust interest rates if
needed
• Loan-to-value ratios have been very
successful
• LVR’s have reduced risk in banking
sector
• Ability of any central bank with limited
reserves to modify exchange rate is always going to be
limited
• Future interest rate decisions will be driven
by data
• The central bank can't fix the housing
market
• Would like to see house price inflation slow
significantly
NZD is higher across the board in
response.
Here’s the link to the full RBNZ Monetary Policy Statement:
Current indicative levels are:
NZD-USD
0.7120 / 0.7145
NZD-AUD 0.9500 / 0.9525
NZD-EUR
0.6240 / 0.6265
NZD-GBP 0.4900 / 0.4925
NZD-JPY
76.05 / 76.30
ends