Reserve Bank of New Zealand Governor Adrian Orr said on Wednesday that it would be better to take small steps with the official cash rate (OCR) and observe how things go. The comment justifies why the bank opted against hiking the OCR by 50bps at its most recent rate decision on Wednesday. The Governor added that the OCR is the bank's favour tool to deal with inflation, which neared 5.0% YoY in Q3 this year. 

Market Reaction

NZD has not seen much of a reaction to the latest remarks and continues to trade near session lows, with NZD/USD in the 0.6860s.