Should the covid cases be contained, the Reserve Bank of New Zealand (RBNZ) stated in its latest Statement of Intent published on Tuesday that “economic policy settings can be expected to normalize over the medium run.”
“We are glad to see New Zealand’s economic activity returning to pre-COVID-19 levels, bolstered by continued good domestic health outcomes and rising worldwide demand for New Zealand’s goods and exports.”
“Employment growth is being fueled by a rebound in consumer spending and construction activity, aided by strong monetary and fiscal stimulus.”
“However, there are still weaknesses, and the recovery will require continuing monetary and fiscal support.”
“Over the longer term, economic policy settings can be expected to normalize as long as COVID-19 is contained and the global and economic recovery is sustained.”
NZD/USD first moved south around 0.7000 in response to the following remark, reversing gains.
The kiwi is currently trading at 0.7028, up 0.06 percent on the day, after failing to break over 0.7050. Around 0400 GMT, the focus shifts to Governor Orr’s speech.
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