Central Banks

Press conference …

Here is the link to the press conference

Highlights from the press conference.

  • We can keep the OCRat the current level for a considerable period of time
  • The risks are balanced
  • The decison was unanimous
  • The direction is equally balanced up or down and remain at 1.7%% for some considerable time
  • economic growth and employment remain robust
  • spending and invested is expected to contribute to economic growth
  • CPI should gradually rise toward 2% midpoint of the targeted range
  • Keeping the rate at 1.75% is the best we can do to maintain maximum employment and move inflation toward the 2% inflation target
  • suppressed wage inflation is perplexing
  • risks for rate cut our international growth faltering, or international financial conditions tightening
  • Inflation is a concern and that why we are keeping monetary policy expansionary
  • inflation has surprised on downside for some time
  • The challenge is the inflation target is easily measured.  The maximum sustainable employment is not easily measured.
  • We want to communicate clearly to a wider audience 
  • Household wealth in house prices is a contributor to economic growth
  • Tail off in house prices is a positive thing for financial stability concerns; Has not yet gone far enough
  • Telling businesses to look forward with regard to pricing vs always looking backward. 
  • At what point is wage pressure going to raise its head and how can the businesses pass that on to the consumer
  • Population growth has been a significant impact to the economy
  • US bond yields one of the key risks at the moment I think good outweighs bad
  • Currency broadly in line with terms of trade
  • Surprised how low business confidence is
  • Big supporter of NZ Dollar traffic system and intervention policy when necessary
  • China still a concern for the global economy, given its debt levels

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