Comments by RBNZ assistant governor John McDermott in an interview
- RBNZ was worried yield curve had priced in a rate hike
- Wanted markets to understand that a rate hike is currently off the table
- RBNZ needs to see growth pick up in Q3
- Would need to see core inflation back above 2% to hike
He goes on to say that the central bank has been pushed nearer to a "trigger point" where they are expecting growth to pick up in Q3 otherwise they would have to reconsider the position they are taking right now.
He also talked about the R-word (recession) in the interview. Not a great showing of confidence by any means.
