RBNZ Chief Economist Conway – OCR forecasts indicate another 75bp easing

Reserve Bank of New Zealand Chief Economist Paul Conway speaks in interview

• NZD drop will boost export revenues
• Output gap will help contain inflation pressures
• OCR forecasts indicate another 75bp easing
• Weaker New Zealand dollar will aid economic recovery
• Willing to look through inflation uptick this year
• Lowering OCR below neutral is part of the risk conversation
• Currently sees no prospect of rate increases
• Taking OCR below neutral is not the central projection

Conway media appearance after this week’s rate cut:

• ForexLive Asia-Pacific FX news wrap: RBNZ’s 3rd consecutive 50bp rate cut, NZD higher

Conway taking a seat

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