Reserve Bank of New Zealand announcement
- says some further easing seems likely
- Says further NZD depreciation is appropriate
(ps. You may recall the guy who said
On the currency, the RBNZ is likely to mention its fall favourably. Inflation is low in NZ. Ordinarily a falling currency should impact to increase inflation, but this has not been a problem for the RBNZ. There is thus a risk that they again 'jawbone' the currency lower. If a lower currency results in building inflation pressures, it would not be unwelcome by the bank, so the risk for trash talk on the NZD is high
Woo hoo!)
So, that brings the OCR to 2.75%
- Easing will depend on flow of economic data
- Cuts q1 2016 annual GDP growth forecasts to 2.2% (from 3.3%)
- Sees inflation reaching 2% in Q3 2016 vs. Q4 of 2016
- Cuts warranted by softer eco data, need to keep CPI near 2%
- Says NZ economy growing at annual rate around 2%
- Says Canterbury construction plateau, activity has slowed
- Says weakening business and consumer confidence
Quick headlines via Bloomberg
Full text: September 2015 Monetary Policy Statement
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Governor Wheeler's press conference starts in 5 mins (2105GMT)
