RBNZ Governor Adrian Orr noted the sharp selloff in New Zealand Dollar after the central bank turned dovish earlier in Wednesday and signaled the next move in OCR is a cut. He was pleased as “markets have shown that they understand what we are focused on and they are forward looking.”

Orr explained that “what we really need is total understanding and confidence from financial markets about our goal, our determination to achieve that goal and the environment and information set we are operating within.” He added, “if financial markets watch us and we watch them then we are just looking at a mirror, we are not learning anything.

Orr said markets have to “think very hard and have their own independent mind around what we are trying to achieve. They expressed that, I assume the other day, when the currency went lower.”

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