RBNZ Governor Adrian Orr has been speaking to Bloomberg. The key points mentioned are:

• RBNZ’s strategy is to keep the yield curve low & flat
• Doesn’t want to the OCR (official cash rate) to go negative at this point
• Prepared for negative rate ‘but a lot later’
• Reiterates negative OCR remains one option for the RBNZ
• Expects to see NZ retail interest rates decline further
• Expects bank competition will pressure margins, lower rates

The NZD is a little higher in immediate response.

The next OCR decision and monetary policy statement will be on the 24th June 2020.

Current indicative levels are:

NZD-USD 0.6075 / 0.6100

NZD-AUD 0.9290 / 0.9315

NZD-EUR 0.5555 / 0.5580

NZD-GBP 0.4955 / 0.4980

NZD-JPY 65.50 / 65.75

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