Speech by Reserve Bank of New Zealand Governor Graeme Wheeler
Available now
Headlines:
- Economy growing at 2.5% annual rate
- Some further easing seems necessary
- Further NZ dollar depreciation is necessary
- Sees several risks around inflation outlook
- More substantial NZD depreciation is required
Mr Wheeler said that in mid-2014, New Zealand's terms of trade were at a 40-year high, but over the past 15 months the economy has experienced several shocks. Export prices for whole milk powder have fallen 63 percent since February 2014, and oil prices are currently more than 50 percent below their June 2014 level. Net immigration and labour force participation are at historic highs, and the real exchange rate has declined steadily since April 2015.
Full text: Monetary policy supporting growth and inflation goal
NZD has had a wiggle & jiggle ... buyers lurking:
