RBNZ: Stagflation not a core risk

The Reserve Bank of New Zealand’s governor Adrian Orr stated that the RBNZ doesn’t see stagflation as a core risk, adding that ”it’s business as usual” on monetary policy and the central banks have ”no regrets on monetary policy,” and that he is ”proud of where we are”.

Orr added that ”being too out of step with others has risks. We’ll be taking heat out of economy by raising the OCR.”.

Meanwhile, the NZD has rallied in the immediate aftermath of the Federal Open Market Committee meeting where the Fed announced a 50bp rate hike and quantitative tightening starting in June. NZD/USD is up some 1.75% on the day.