The RBNZ rate hike today (and hawkish statement):
- RBNZ raise cash interest rate target by +75bp to 4.25%, as widely expected
- NZD/USD higher after the Reserve Bank of New Zealand raises its cash rate target by 75 bp
RBNZ Governor Orr press conference now:
- it will be a shallow recession
- economic activity currently strong
- spending currently strong
- inflation expectations must come down
- wage expectations must also decline
Other officials are speaking also:
- the neutral interest rate has increased
- monetary conditions are not as contractionary
- more time was spent discussing +75 or +100 than was spent discussing +50
- we are talking about 2 or 3 quarters of shallow recession
