RBNZ is in “watch, worry and wait” mode - Westpac

According to Sean Callow, Research Analyst at Westpac, RBNZ governor Adrian Orr has refreshed the central bank’s communications since taking over in March.

Key Quotes

“Aside from adding colourful images to the website, he has a clear communication style in both statements and speech. Today’s quarterly statement included a notable shift lower in the expected interest rate profile. Governor Orr says the bank expects to keep its cash rate at 1.75% “through 2019 and into 2020.”

“But he could well have been speaking for many central bankers around the world when he said that the RBNZ is in “watch, worry and wait” mode. In particular, there remains a wide range of expectations on how the US-China trade war will play out.”