RBNZ Governor Adrian Orr said today that monetary easing bias remains in place for now. And softer economic conditions in US, Europe and China are having a role in the dovish tone.
Also, Orr added that “possibilities of first quarter inflation numbers being undershot have already being factored in the RBNZ’s dovish bias”. The comments came just ahead of New Zealand’s CPI release tomorrow. Headline inflation is expected to slow from 1.9% yoy to 1.7% yoy in Q1.
NZD/USD is a touch lower after the comments. However, Orr said that inflation undershot was already factored in. Thus, there is prospect of a mild rebound should tomorrow’s CPI release meets expectations.
