RBNZ Assistant Governor Christian Hawkesby crossed wires, via Reuters, during early Monday. The Reserve Bank of New Zealand’s (RBNZ) senior official conveyed the RBNZ preference, “To have a monetary stimulus in place for a longer period of time than take it away too quickly,” per Reuters.
“Our messages around having stimulus in place for a considerable period, being patient and our least regret is keeping stimulus in place for too long rather than taking it away too quickly, all of those messages stay in place,” RBNZ’s Hawksby added.
Additional comments…
Similar amount of stimulus still needed as back in February.
OCR projections of a rate hike at the end of next year is conditional on underlying economic assumptions.
Aware that markets trying to get ahead of bias, must remember these are conditional projections.
Recent covid-19 outbreaks a reminder that uncertainties remain.
Inflation not seen reaching sustainable levels until tail end of projections.
FX reaction
NZD/USD eases from the intraday high of 0.7261 towards 0.7250 following the news.
Read: NZD/USD: Recovery moves capped around mid-0.7200s following China PMI
