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23 Apr 2015
RBNZ not considering rate hike, but rate cut not ruled out – RBNZ’s McDermott
FXStreet (Mumbai) - Speaking at the regional Chamber of Commerce lunch on Thursday, the Reserve Bank of New Zealand (RBNZ) deputy governor John McDermott ruled out the possibility of a rate hike in the near future but said that a rate cut could be warranted if demand began to weaken.
Key Quotes:
"At present, the Bank is not considering any increase in interest rates,"
"Before considering any tightening in monetary policy we would need to be confident that increased capacity utilisation and labour market tightness was generating, or about to generate, a substantial increase in inflation."
"The timing of future adjustments in interest rates will depend on the evolution of inflationary pressures in both the traded and non-traded sectors. We continue to monitor and carefully assess the emerging flow of economic data."
Key Quotes:
"At present, the Bank is not considering any increase in interest rates,"
"Before considering any tightening in monetary policy we would need to be confident that increased capacity utilisation and labour market tightness was generating, or about to generate, a substantial increase in inflation."
"The timing of future adjustments in interest rates will depend on the evolution of inflationary pressures in both the traded and non-traded sectors. We continue to monitor and carefully assess the emerging flow of economic data."