RBNZ Governor Orr: Confident inflation back in its target band

Reserve Bank of New Zealand Orr:

• confident inflation back in its target band
• can commence re-normalising rates
• we considered a range of moves and consensus was for 25bps
• projections are NZ is headed towards a period of low and stable inflation
• broad range of indicators are consistently soft

• Reasonable first step for monetary easing, in strong position to move
  calmly
• Remarkably pleased
  with how economy has panned out with our forecasts
• High frequency data
  show economy weakening
• Its a good news
  story of pricing intentions changing
• Still have
  restrictive financial conditions

Earlier, read from the bottom up for the chronology:

• Market pricing is for an Reserve Bank of New Zealand rate cut at its next meeting too
• ICYMI – RBNZ cut its cash rate by 25bp, market consensus was for on hold
• NZD/USD marked lower after the Reserve Bank of New Zealand cut its cash rate
• Reserve Bank of New Zealand announce cash rate cut to 5.25%

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