RBNZ's Orr: Stable inflation is in sight, policy rate to remain restrictive

Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr flagged the potential that the New Zealand central bank may be more "circumspect" when it comes to further rate cuts looking ahead after the RBNZ kicked off a rate cutting cycle this year.

Key highlights

Low and stable inflation is again in sight.

NZ monetary policy is still at a restrictive level.

In NZ, we see persistence in domestic and services inflation.

Inflation uncertainty continues to influence the MPC's thinking.

The OCR will still be restrictive in the upcoming quarters.

The OCR is to become less restrictive going forward.

On the way down we can be more incremental.