RBNZ’s Orr: Monetary and financial policies alone cannot solve property issues

In an attempt to clarify the Reserve Bank of New Zealand’s (RBNZ) workings to Finance Minister Grant Robertson, Governor Adrian Orr mentions that the bank already considers asset prices.

The central bank governor also sheds light on the need for measures other than the monetary and financial policies.

Additional quotes…

House prices are an important channel that affects inflation

Lower interest rates promote spending, investment.

FX implications

NZD/USD fades upside momentum towards 0.7000, off the intraday top to currently near 0.6970, after the latest comments from the RBNZ Chief pours cold water on the face of expectations concerning a policy shift earlier in the day.

Read: NZD/USD jumps over 50 pips to print 29-month high on hints of RBNZ's remit change