RBNZ Wheeler: Period of cash rate stability most prudent option

FXStreet (Bali) - RBNZ Governor Wheeler said period of cash rate stability most prudent option, adding that a rate cut might be appropriate if sufficient capacity to cope with extra demand, while on the NZD, Wheeler said that NZD level unjustified, unsustainable despite recent easing.

Key headlines - via Reuters

Governor says period of cash rate stability most prudent option

Governor says inflation seen below target band, negative for a while, before rising more gradually to around 2 pct

Governor says inflation outlook suggests rates on hold for some time

Governor says would need confidence spare capacity, labour market generating substantial inflation lift before any rate rise

Governor says rate cut might be appropriate if sufficient capacity to cope with extra demand

Governor says deteriorating domestic demand from drought or worse external outlook may warrant rate cut

Governor says NZ economic prospects good, growth drivers sustainable

Governor says main risks are china economy outlook; house, dairy, oil prices; NZ dlr

Governor says house price inflation appears rising in auckland; monitoring impact on financial stability, wider economy

Governor says trade weighted NZ dollar NZD level unjustified, unsustainable despite recent easing; significant further fall expected