RBNZ May Be Able to Cut Sooner If Fed Eases First, Conway Says
- Central bank Chief Economist Paul Conway speaks on webinar
- Says Fed cuts could drive up kiwi dollar, reduce inflation
The RBNZ last week said its Official Cash Rate needs to remain at 5.5% for a sustained period of time, and projected no reductions until 2025.
Photographer: Birgit Krippner/BloombergThis article is for subscribers only.
New Zealand’s central bank may be able to start cutting interest rates sooner than it currently expects to if the US Federal Reserve begins easing later this year, chief economist Paul Conway said.
“If the Fed, for example, did start to cut toward the end of this year and we didn’t” then “that would show up first and foremost in the exchange rate,” Conway said on a webinar hosted by Harbour Asset Management Wednesday in Wellington.