RBNZ Gov Orr says tariffs would put up pressure on price levels globally

NZD/USD is giving back some of its earlier jump, its around 0.5852 now. From his circa 0.5880.

RBNZ Governor Orr with more:

• Neutral rate is somewhere 2.5 to 3.5%
• expect to be around neutral by the end of 2025

• Confident domestic inflation pressures will continue to ease.Confident economic growth will pick up in 2025.Expect to be around neutral by end 2025.Neutral is somewhere between 2.5% to 3.5%.We can rule out rates going up in near term because of U.S. tariffs.We do have concerns about tariffs.Tariffs would put upward pressure on level of prices globally.

Earlier:

• RBNZ Gov says it’s a misunderstanding that RBNZ projections show slower pace of rate cuts
• RBNZ Monetary Policy Statement Media Conference – live link
• What is the Reserve Bank of New Zealand even doing? This is a horror ‘typo’/link
• New Zealand dollar has surged higher after the Reserve Bank of New Zealand 50bp rate cut
• Reserve Bank of New Zealand cuts cash rate by 50bp, as expected

This article was written by Eamonn Sheridan at www.forexlive.com.