More OCR cuts are on the way - RBNZ
Further monetary policy easing and exchange rate depreciation are required for the good of economy, Reserve Bank governor Graeme Wheeler said in a speech in Tauranga this morning.
Of late, the New Zealand economy has experienced a series of shocks - notably plunging dairy prices.
Wheeler said there were risks and uncertainties around the inflation outlook and that, despite recent declines, the exchange rate remains too high for current economic conditions.
“At current levels of export prices, a more substantial exchange rate depreciation will be required to stabilise the net external liabilities position relative to GDP.”
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