RBNZ’s Hawkesby says the market is getting too far ahead on rate hikes, remember these are conditional

Reserve Bank of New Zealand Assistant Governor Hawkesby

  • says a similar amount of
    stimulus still needed as back in February
  • least regret would be to have
    stimulus in place longer than taking it away quickly
  • OCR projections of a rate hike at
    the end of next year is conditional on underlying economic
  • aware that markets trying to get
    ahead of bias, must remember these are conditional projections
  • recent covid-19 outbreaks a
    reminder that uncertainties remain
  • inflation not seen reaching
    sustainable levels until tail end of projections

Headlines above via Reuters with bolding mine. 

Evan at RBNZ Governor Orr’s press conference last week Hawkesby was interjecting with urgings to view the projections as conditional. One factor motivating Hawkesby will be the kiwi $ gaining after the RBNZ policy announcement last week – this is not something the Bank wants. 

Reserve Bank of New Zealand Assistant Governor Hawkesby

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