- RBNZ’s Orr: There are early signs of price pressures beginning to ease in the global economy
Market news
RBNZ’s Orr: There are early signs of price pressures beginning to ease in the global economy
“Cyclone-related inflationary pressure may require higher rates for longer,” said Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr during an interview with Bloomberg TV on early Thursday in Asia, late Wednesday elsewhere.
Also read: RBNZ's Orr: Core inflation is too high, expectations elevated
Additional comments
There would need to be a large inflationary shock to return to 75bp rate hikes.
RBNZ is optimistic about a return to steady, low inflation.
RBNZ has been aggressive in its tightening.
It’s worth noting that RBNZ’s Chief Economist Paul Conway also crossed wires, via Reuters, while stating that a cyclone that hit New Zealand earlier this month was leading to greater uncertainty around GDP projection. RBNZ's Conway was testifying at parliament's Finance and Expenditure committee meeting, per Reuters.
NZD/USD stays pressured
The news fails to ease pressured off the NZD/USD pair as it holds lower ground near 0.6215 at the latest.
Also read: NZD/USD bears on top as traders await more cues from US data
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